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.
If you find your business is in need of bankruptcy counsel, Shumway Van & Hansen always offers free consultations and often times can schedule an appointment within 24 hours. For more information please continue to utilize www.shumwayvan.com, call us at (801) 478-8080 or (702) 478-7770, or stop by either of our offices which are located at 8985 S. Eastern Ave, Suite 100, Las Vegas Nevada 89123 and 8 East Broadway, Suite 550, Salt Lake City, Utah 84111. We look forward to hearing from you soon.