Developers trying to build the Deer Island Resort, about 30 minutes southwest of Salt Lake City, filed for Chapter 11 bankruptcy in Utah bankruptcy court. A move which should allow the company to reorganize its debts and help it to become viable again.
Arlin Geophysical Co., the developers, intended the area for homes, shopping centers, and a resort. However, the area is within sight of the U.S. Army base Camp Williams and in line of fire during military drills.
After two recent fires sparked from the base’s gunfire, the developers claim the area is no longer fit for homes, and that it would also not be viable to have homes in the line of fire. Last year, Arlin brought a lawsuit against the Army requesting monetary damages. That lawsuit is separate from this recent Utah bankruptcy case.
On May 23, Arlin filed for Chapter 11 business bankruptcy in Utah bankruptcy court because it was no longer able to pay its taxes. With the property at risk of a sheriff’s sale, this bankruptcy filing in Utah bankruptcy court now puts the sheriff’s sale on hold and gives Arlin time to look for potential buyers.
To read more about Arlin’s Utah bankruptcy filing click here or here.
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