Creditors make offer to buy Westport Golf Course

WESTPORT — Motions in federal Bankruptcy Court have halted the Westport Country Club property move to public auction. Robert Hall and Leslie Hall-Butzer, creditors from Consolidated Mortgage LLC and siblings of owner John Hall, are looking to buy the property on Friday, Sept. 9, according to their attorney Louis J. Maione, P.C., of New York City. "If Bankruptcy Court allows the sale to go through to Consolidated Mortgage — the only secured creditor — then Consolidated would become the owner," Maione told the Sun on Monday. The Westport Golf Course's majority owner John Hall had filed for Chapter 11 on March 28, 2014. But the bankruptcy case was converted to a Chapter 7 on May 6 last year in a move to sell the debtor's assets, according to court documents. A concurrent case in Albany New York Supreme Court has alleged that Consolidated Mortgage "improperly fabricated a default" and purchased bank mortgage held on the property in 2013. But Maione maintains that Consolidated Mortgage rejected a forbearance payment in September that year "due to misinformation given to us by the bank." Six forbearance payments then accrued, Maione said. "He (John Hall) then filed bankruptcy." The conversion to Chapter 7 was ordered by Judge Robert E. Littlefield Jr. at the Northern District of New York Bankruptcy Court. "John Hall did not follow the orders (for payments) the judge has assigned," Maione said of the case history. "So we made an order to have the property liquidated." If the bankruptcy court judge allows Consolidated Mortgage to buy the property on Friday, Maione says his clients will pay $60,000. Maione said his clients, Robert Hall and Leslie Hall-Butzer, had already invested $825,000 to save the mortgage. "If they get the property, then they would run the golf course like it is supposed to be run," Maione said of the country club in the heart of Westport. "We don't want to see that golf course close down." Westport Golf Course has remained open this summer, but without its attendant club and restaurant amenities. It would close with the season's end, Maione said, after the pending Sept. 9 but likely closer to Columbus Day. "Ernie LaPine does a pretty good job keeping the course in good shape," the attorney said, allowing that he visited the course last week. "Then we would circle the wagons and do what's necessary to get it open next April." Maione said the separate Supreme Court matter would continue. That case alleges that Consolidated Mortgage fabricated a mortgage forbearance, and forced Westport Golf to default on loan arrangements in 2013. The move to purchase the First Niagara mortgage in 2013, Maione said, came after John Hall's siblings grew weary of what they viewed as improper management and investor reporting practice. "They got tired of it and when he (John) asked them to co-sign the Essex County IDA loan in 2011, they asked him to put somebody else in charge." Hall's siblings Rob and Leslie had received only brief annual reports instead of full quarterly financials, the attorney said. "John Hall has a long history of refinancing that golf course; he has done it four times." But John Hall's claim brings golf licensure and expertise into play. Paperwork filed in Bankruptcy Court by attorneys for John Hall and his group, Westport Golf Investors LLC, claim that he alone has the training and background to properly manage the facility. "The golf course cannot successfully operate without John Hall who has all the requisite licensing (including spray application), PGA (Professional Golfers' Assoc.) certifications, and operational experience necessary to operate the golf course," case documents argued last year. "Consolidated Mortgage, LLC, Robert Hall, and Leslie Hall‐Butzer blame by innuendo when requesting this Bankruptcy Court to draw conclusions (specifically that John Hall is mismanaging the golf course) when there is a lack of evidence to support the conclusion," court records charge. The Chapter 7 Trustee assigned to the case, attorney Robert Wolinski, looked to hold a hearing for a private sale on Sept. 21. But that time frame was subsequently shortened to Sept. 9 at 9 a.m. at the U.S. Courthouse in Albany. Attorney Stefanie DiLallo Bitter, who was appointed the receiver in Chapter 7 proceedings, requested the earlier date to protect the asset. Bitter's letter to Judge Littlefield filed on Aug. 27 said that "With this being a seasonal business, and the season ending next week, I am very concerned that I will not be able to maintain and protect the asset until the projected closing date. I am already operating at a deficit and have multiple bills that remain unpaid. As a result, I would respectfully request that if at all possible the Court consider expediting the Trustee's application, and moving the closing date to Sept. 9." SUPREME COURT Reached via email, John Hall's Supreme Court case attorney John M. Silvestri of the Glens Falls firm Stanclift, Ludemann, Silvestri & McMorris, PC, said they are hoping the Bankruptcy proceeding is dismissed on Friday or discontinued so the matter will be heard solely before state Supreme Court. "Under John Hall's management the course was meeting its obligations, operating and was a positive part of the local economy," Silvestri said. "His brother, Robert Hall and sister, Leslie Hall-Butzer, by insisting that the affairs of the golf course be burdened by a Trustee in Bankruptcy, a Receiver in The Supreme Court and an outside manager have driven the business into the ground. "The cost of the Trustee, Receiver and outside manager insured that income went to their salaries rather than the ongoing maintenance and growth of the course." Silvestri said actions by John Hall's brother and sister in the courts have been disastrous to Westport Golf Course. "Once the case is under the control of just the NY Court we are hoping to reverse this damage and possibly have John reinstated as the manager," Silvestri said.

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Creditors make offer to buy Westport Golf Course

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