A joint plan of reorganization was approved for the gated Promontory development Friday in U.S. Bankruptcy Court in Salt Lake City, according to a press release from the developer.
Promontory Managing Director Rich Sonntag claims the decision will help the development emerge from Chapter 11 bankruptcy.
"Recently, we’ve seen a new group of prospective buyers who are looking at the great values available now at Promontory and recognizing that the overall market will soon start to turn around," Sonntag said in a prepared statement. "Promontory will be emerging from bankruptcy committed to its core vision and under a financial plan that protects its owners and members."
The reorganization plan approved by the court protects the interests of owners at Promontory, Sonntag said.
The reorganized company will assume Promontory club-membership agreements, lot-purchase agreements and related development agreements, according to Sonntag.
Meanwhile, many employees at the 7,200-acre community in the Snyderville Basin will keep their jobs under the reorganization, he said, adding that the plan also establishes a reserve for payment of unsecured creditor claims.