10000001275

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re:
Chapter 11
Cordillera Golf Club, LLC,

dba The Club at Cordillera.
Case No.: 12-11893 (CSS)
Debtor.
Related Docket No. 59

Hearing Date: July 19, 2012 at 2:00 p.m. ET
Objection Deadline: July 12, 2012 at 4:00 p.m. ET
OBJECTION OF CORDILLERA METROPOLITAN DISTRICT AND CORDILLERA

PROPERTY OWNERS ASSOCIATION, INC. TO EMERGENCY MOTION OF THE
DEBTOR FOR ENTRY OF INTERIM AND FINAL ORDERS PURSUANT TO 11 U.S.C.
105,361,362, 363(c), 364(c), 364(d), AND 364(e) AND FED. R. BANKR. P. 2002, 4001,
AND 9014 (I) AUTHORIZING DEBTOR TO OBTAIN POST-PETITION SECURED
FINANCING, (II) GRANTING SECURITY INTERESTS AND SUPERPRIORITY
ADMINISTRATIVE EXPENSE CLAIMS, (III) GRANTING ADEQUATE
PROTECTION TO PRE-PETITION SECURED PARTIES, (IV) AUTHORIZING THE
USE OF CASH COLLATERAL AS PROVIDED HEREIN, AND (V) SCHEDULING A
FINAL HEARING
Cordillera Metropolitan District (the "District") and Cordillera Property Owners
Association, Inc. (the "CPOA"), by their attorneys, Sherman & Howard L.L.C. and Ashby &
Geddes, object (the "Objection") to the Emergency Motion Of The Debtor For Entry Of Interim
And Final Orders Pursuant To 11 U.S.C. 105, 361, 362, 363(C), 364(C), 364(D), And 364(E)
And Fed. R. Bankr. P. 2002, 4001, And 9014 (I) Authorizing Debtor To Obtain Post-Petition
Secured Financing, (II) Granting Security Interest And Superpriority Administrative Expense
Claims, (III) Granting Adequate Protection To Pre-Petition Secured Parties, (IV) Authorizing
The Use Of Cash Collateral As Provided Herein, And (V) Scheduling A Final Hearing (the "DIP
Motion"). In support of their Objection, the District and the CPOA respectfully state:
The Debtor in this chapter 11 case, and the alst four digits of its employer tax identification number, is: XXXXX1317. The corporate headquarters address for the Debtor is 97 Main Street, Suite E202, Edwards, CO 81623.
{00650727;vl }
PRELIMINARY STATEMENT
1.
In the DIP Motion, Debtor requests authority to obtain secured post-petition
financing in the principal amount of $420,865 on an interim basis and $4.7 million in the
aggregate on a final basis (the "DIP Loan").
In return for the $4.7 million DIP Loan, the
proposed Dip Lender and the Debtor's proposed real estate advisor will receive a total of
$188,000 in fees (approximately 4% of the total DIP Loan amount), will reserve interest
payments on the DIP Loan in the amount of $694,000, and draw $762,000 to fund a Reserve
Account (as defined in the DIP Motion) which the CPOA and District understand will by used to
fund the payment of interest accrued prepetition under the loan facility with the Debtor's
prepetition lender.
2.
A proposed budget (the "DIP Budget") with respect to the DIP Motion was filed
on July 9, 2012 (a copy is attached hereto as Exhibit A). The DIP Budget indicates the Debtor
will be slightly cash flow negative, prior to any borrowing under the DIP Loan, through the week
ended July 20, 2012. The budget attached to the Debtor's Cash Collateral Motion (the "Cash
Collateral Budget", a copy of which is attached hereto as Exhibit B), however, indicates the
Debtor will be cash flow negative in the amount of $142,452 through the week of July 20. The
Debtor proposes to draw down the entirety of the balance of the DIP Loan the week ended
August 8, 2012.
3.
As set forth more fully below, the CPOA and the District believe the DIP Loan is
unreasonably expensive and potentially unnecessary. Moreover, the assumptions underlying the
Budget are significantly inconsistent with the Debtor's historical revenues and expenditures.
A. The DIP Loan Is Unreasonably Expensive and Potentially Unnecessary.
{00650727;vl
}2
4.
According to the DIP Motion, the DIP Loan will accrue interest at the rate of
16% per annum, and if an event of default occurs the interest rate will increase by an additional
6%. The proposed DIP Lender is assured of receiving at least $326,000 in interest at maturity,
and any shortfall between the actual interest paid and the $326,000 is to be paid as an "exit fee"
(which is waivable in the event the proposed DIP Lender also provides exit financingf
$752,000 of the DIP Loan is to utilized to fund the Reserve Account which is to be under the
exclusive control of the proposed DIP Lender and used solely to fund payments required under
the DIP Loan Documents. The CPOA and the District understand the Reserve Fund will be used
to fund payments of prepetition interest payments as adequate protection of Alpine Bank's
("Alpine") interest in Alpine's collateral under its prepetition loan facility with the Debtor.
5.
Accordingly, the DIP Loan will provide the Debtor with approximately $3 million
in "new money" for use as working capital ($4. 7 million less $188,000 in fees, the $752,000
Reserve Account, and approximately $695,000 in interest on the DIP Loan (including interest on
the Reserve Account)). The District and CPOA respectfully submit that the costs attendant to the
DIP Loan are excessive, and as obligations which must be refinanced in order to permit the
Debtor to confirm a plan, will unfairly hamstring the Debtor's ability to reorganize.
6.
As stated above the Dip Budget indicates that the Debtor will be slightly cash
flow negative during the first four weeks of the case prior to drawing on the DIP Loan. 3
Assuming the DIP Budget is accurate, the Debtor has failed to demonstrate that it needs to
2
As of the date of this objection the formal DIP Loan Documents have not been filed with the Court or made available to
parties-in-interest. Thus it remains possible that the terms of the DIP Loan may be change materially prior to the hearing on the
DIP Motion. The District and the CPOA reserve the right to supplement this Objection after receipt and review of the DIP Loan
Documents. The DIP Loan should not be approved unless and until the Debtor has filed the DIP Loan Documents and parties-ininterest afforded an opportunity to review them.
3
Specifically, the DIP Budget indicates the Debtor will be cash flow positive in the amount of$117,331 the week ending June
29, cash flow negative in the amount of$122,266 the week ending July 6, cash flow negative in the amount of$92,248 the
week ended July 13, and cash flow positive in the amount of $35,290 the week ended July 20.
{00650727;vl
}3
borrow $450,000 on an interim basis. In addition, the Debtor has failed to demonstrate that it
needs to draw the full amount of the DIP Loan by the week ending August 3, 2012 to fund it's
reorganization. These issues are exacerbated by the Debtor's apparent plan to sell its Mountain
Course while it continues its efforts to restructure its remaining operations. There is no
explanation offered how the sale of the Mountain Course (if that is the Debtor's plan) will impact
the Debtor's ability to continue to operate as a going concern.
7.
The CPOA and the District also submit that an inference may be drawn that the
Debtor's have chosen to enter into the flawed DIP Loan in order to add an arrow to the quiver of
arguments it raises in opposition to the pending motions to transfer venue.
B. The DIP Budget is Flawed.
8.
Similarly, the DIP Budget is strikingly at odds with the Debtor's recent financial
performance, is inconsistent with the prior Cash Collateral Budget, and leaves too many
unanswered questions to support a borrowing of$4,700,000.00. Among other things:
(a)
the Debtor must explain the reasons for the material differences to the DIP
Budget and the Cash Collateral Budget
(b)
the Debtor must explain the basis for the member dues it expects to
receive in 2013. The DIP Budget indicates the Debtor's will receive a bit
more than $2 million in membership dues through June 28, 2013. The
Debtor should explain the basis of this assumption.
(c)
Golf Revenue for 2012 appears to be based on number of rounds for

public play that far exceeds historical practice. The Debtor charges $175
per round, and to be in line with the DIP Budget will require more than
{00650727;vl
}4
200 rounds per week. Historically, the Debtor's clubs have averaged 1,500
round per year, or 60-70 rounds per week.
(d)
Food & Beverage Revenue appears excessive, and it is not clear from the
Budget if this figure is net of cost of goods sold (if so the figure is even
more unrealistic);
(e)
The DIP Budget indicates that Golf Operations Expenses will remain the
same in 2012 and 2013, but upon information and belief the Debtor
intends to operate the Summit Course in 2013 as well as the courses
operating in 2012. It is unlikely Golf Operations Expenses will remain the
same in 2013 if Summit is operated.;
(f)
the DIP Budget reflects the expenditure of $285,000 in undefined capital

expenses;
(g)
there is no explanation in the DP Budget for the receipt of $1,800,000.00

for the week of September 22, 2012 under the line "Capital Event."
(h)
the Debtor needs to provide detail to the General/Administrative/

Management line item, which totals $1,096,583, approximately 20% of
the Total Operational Disbursements.
(i)
The DIP Budget does not contain a line item for payment of taxes in 2013,
and it is inconceivable that no tax will be due and owing.
C. Additional Objections.
8.
In addition, the Emergency Motion states that the Debtor may use certain of the
proceeds of the loan to pay a fee to GA Keen Realty Advisors, LLC ("Keen") for procuring the
{00650727;vl
}5
post-petition Lender. The Debtor should state expressly the amount of the proposed payment to
Keen and the specific services that Keen provided. To the extent those services were provided
pre-petition, Keen may have nothing more than a general unsecured claim. The District and the
CPOA reserve all rights to object to any fee to be paid to Keen by the deadline to object to
Debtor's application to retain Keen.
9.
Any order approving the DIP Loan should provide that the Order prevails in the
event of any inconsistency between the DIP Loan Documents and any Interim or Final Order
approving the DIP Loan.
10.
Lastly, in order to ensure that the District's outstanding tax liens are not primed n
the event the DIP Loan is approved, the proposed DIP Lender and the Debtor have agreed to
include the following language in any order approving the DIP Loan:
"Notwithstanding any other term of this Order or the DIP Credit Documents, the DIP
Liens and the Second Liens shall be junior to the liens of any taxing authority to the extent such
liens relate back and have priority under applicable non-bankruptcy law; provided nothing in this
Order or the DIP Credit Documents shall act to determine, acknowledge or ratify the validity,
enforceability, perfection, priority or unavoidability of any such lien, or any taxing authority's
debt or claims."
11.
The District and the CPOA reserve all rights (a) to supplement this Objection, (b)
to join in objections filed by other parties in interest, and (c) to object to the approval of the postpetition loan on a final basis, including on additional grounds not included in this Objection.
WHEREFORE, for the above reasons, the District and the CPOA respectfully request
that (a) any decision on the DIP Loan be made by the Colorado bankruptcy court, (b) that the
{00650727;vl
}6
Emergency Motion be denied, (c) that any interim borrowing be limited to the minimum amount
shown to be in fact necessary pending a final hearing, (d) that any order approving the DIP Loan
include the language quoted above, and (e) for such additional relief as the Court deems proper.
July 12, 2012.
\A~~
William P. Bowden (#2553)
Ricardo Palacio (#3765)
500 Delaware Avenue, 8th Floor
P.O. Box 1150
Wilmington, DE 19899
Phone: 302-654-1888
Fax : 302-654-2067
E-Mail : Wbowden@ashby-geddes.com
rpalacio@ashby-geddes.com
and
SHERMAN & HOWARD L.L.C.
Peter A. Cal
Mark L. Fulford
633 17th Street, Suite 3000
Denver, CO 80202
Phone: 303-297-2900
Fax: 303-298-0940
E-Mail: pcal@shermanhoward.com
mfulford@shermanhoward.com
ATTORNEYS FOR CORDILLERA
PROPERTY OWNERS ASSOCIATION,
INC. AND CORDILLERA
METRO PO LITAN DISTRICT
{00650727;vl }7
EXHIBIT A
Cordillera Golf Club LLC

Forecasted Cash Flow Budget
For the Weeks Ended June Z9, ZDlZ- June ZS, 2013
6/29/12
Rewnues:
-~
j ____!01!_357
~cu_e(~re~~Cil~_fees,rental, other)
Golf Shop Sales
Food and Beverage
otherRevenue
Total Revenues
2
3
4
5
6,996
3,952
5,183
5
117,493
G;;lfilP;;aiians -
1l
"'
7/20/12
7/27/12
8/3/12
8/10/12
8/17/12
8/24/12
8/31/12
9/7/12
9/14/12
Golf COurse Maintenance

other Amenities/Misc. Expense
General/ Administrative/ Management
Building Maintenance
Utilities, Insurance, POA- --Property Taxes
Total Operational Disbursements
CashFiowBeforeCa_ll_ltaiExpendltures
6
1
9
10 ---(-162)
11
12
13
(162
------1-----
17,900
5,100
23,000
33,190 $
30,380 $
12,000
37,275
5,600
6,500
82,565
36,750
5,600
9,000
81,730
36,750
5,600
78,900
----9:0oo- - 63,350
34,717
6,400
-10,637
130,654
Restructuring:
15
16
17
18
Pre-Petition Interest
DIP Fees
DIP Interest --------- -- ----Legal, Restructuring and US Trustee Fees
UCC Counsel and Financial Advisor
Utlnty Deposits
Capital Event
Principal Payment to DIP Lendera-~dAipTrieiiank-
Total Restructuring COsts
19
20
21
____
1
__
(133,266
(37,134)
(23,4871
(45,412)
(3,837)
(25,943)
(7,000)
-
{6,500)
(13,113
(14,774)
(1,608)
(5,607)
(4,838)
-
__(!_~) _ _ {46,440)
(27,907)
<zo,687)
31,000
34,717
6,400
11,500
83,617
10,000 $
34,717 ....
6,400
10,750
61,867
5,710 $
--34,717-6,400
10,150
56,977
--(45.9iij .
(3,837)
(45,715)
(5,615)
J35,209)
(184,881)
(6,000)
(29,407} ----(5-;ixio)
(27,907)
(36,553)
(16,614)
(24,040)
(16,614)
(42,123)
(50,412)
(67,149)
(45,912
(1,000)
(3,837)
(1,000)
(3,837)
(95,571)
(29,685)
(19,4_8_6) __ __l?~.?~
(2,809)
(5,615)
(2,808)
(5,615)
(18,541)
(32,659)
(8,671)
(10,041)
- ------ :
(202,597)
{168,229)
(128,154)
(135,641)
- $
34,715
6,400
10,000
51,115
39,500
~--ii;soo
34,114
7,500
9,600
_90,71_'1 _
34,639
7,500
9,150
62,789
(26,907)
(22,838)
(45,912)
(3,837) -
(36,816)
(5,615)
(40,925)
(182,850)
(4,000)
11z.on>
(30,056)
- TiiiiO)
(21,727)
(2, 793)
(41,845)
(431,890)
(545,183)
(66,287)
(78,664)
(53,001)
(92,136] --
(482.394)
(84,612)
---(66,287)
- --- (8,000)
{86,664)
{53,001)
(92,136)
(55,000)
(537,394)
(77,192)
-:- --------:-
___ __ ____:_ r-------_(63,500)
(62,667)
(300,000)
(20,000)
-
(60,248]
35,290
(121,531)
117,331
(12,000)
(122,266)
(60,248)
35,29~.
(1~31) _ _ (71,943]
(5,000)
(15,7so>
(23,249)
(1,000)
(6,486)
(9,026)
(43,605)
(104,116)
(84,612)
{110,266)
(71,943)
-
. _ _ ........... ...........
(63,500]
(110,808)
(5,603)
(325)
-
(32,ooo)
(32,000)
(180,236)
(77,192)
- -(92~48j ----35,290
(301,767)
(149,135)
~ -
117,331
Total Cash Flow Before DIP
(24,500)
121,180!
(48,400)
(2,837)
{30,729)
(5,620)
-
117,331
14
Capital Expenditures
(;~Flow From Operations
Beginning Cash
Tenn Loan Draw
---- ---Ending cash
__
_
- ---- t----1-----+----l-----il-----+------+----+-----t----+----t----+-----ii----
Food & Beverage operations
<(
7/13/12
----
Membership Dues Social & Golf
CostofGoods:F&B
t-
7/6/12
(122,266)
-r----1l7,352
234,683
112,417
117,331
(122,266)
(92,248)
22 $ 234,683 _$ 11:!,1117 $ 20,!70
--- --: --- -- -- :

(84,612)
(66,287)
(320,000)
(126,167)
----
--
(406,664)
(179,167)
(92,13_6) __ (~_3_!,:!_~4)_
20,170
55,460
173,891
4,304,557
4,219,945
4,153,658
3,746,994
3,567,827
3,475,692
35,290
(301,767)
(149,135]
(84,612)
(66,287)
[406,664)
(179,167)
(92,136)
(537,394)
420,198
4,2~ __ ___
55,'\6_11 _1_____173,891 $ 4,!~ $ 4,119,~ $ 4,153,658 $ 3,746,~ $ 3,567,82Lci_3,475,692 _1_2,938,~__!_
1of5
Printed on 7/9/2012 at 1:43 PM

For the Weeks Ended June 29, 2012- June 28, 2013
9/21/12
10/5/12
9/2B/U
10/12/12
10/19/12
lD/26/12
11/Z/12
11/9/U
11/16/12
12/7/12
-
11/30/12
11/23/12
7--Revenues:
Membership Dues ~~~_11<-~-~! _____
Gel!! Revenue (greens, cart fees ,rental, other)

Golf Shop Sales
Food and Beverage
Other Revenue
Total Revenues
--
2
3
4
5
--
1,200 $
4,500 $
- $
34,114
7,500
9,000
33,939
51,814
55,939
31,325
(16,432)
(6,000)
(12,938) 1---J.~_6,380)
(47;iliij
(30,057)
(2,837)
(800)
(25,715)
(9,727)
(20,615)
(7,793)
(8,671)
(9,741
(16,432)
(8,237)
(38,912)
(1,837)
(36,813)
(10,615)
18,125
5,000
7,~!>_0
10,000 ----a; zoo

-
'-::---:- - - - ..
Cost of Goods: F&B
<(
Iii
~
;;
Food & Beverage Operations

Golf Operations
Golf Course Maintenance
Other Amenities/Misc. Expense
------
General/ Administrative I Management
utliiti~~. Insurance, POA
Property Taxes
6
7
8
9
10
11
12
13
C.sh Flow Before C.pltal Expenditures
r----------------
ca_pJtal Expenditures
cash Flow From Operations
14
14,500
5,000
8,000
13,625
5,000
27,500
26,625
---(4.ooo)
(34,059)
(33,886)
(800)
j5,304)
(8,266)
(32,6~~ - -- {9,741)
8,000
(16,432)
{5,737)
(16,688)
~-
- $--
8,626
6,585
5,000
1,250
4,800
4,200
18,426 .. _ _E~03~
(8,041)
(33,886)
- $
lg,!l_O~
7,215
10,000
6,800
(12,432)
(250)
(3,446)
(6,858)
(14,788) .........\!~81::3)
(9,750
(3,4461
(16,688)
(6,858)
(10,813)
(2,577)
(8,783)
(32,659)
(27,715)
(3,615)
(8,6711
___ _{5,303)
(8,266)
(9,741)
(26,813)
(3,615)
(6,461)
--6,800
6,000
---
6,000
6,000
6,000
-- (2~,182)
(3,446)
(14,787)
(6,250)
(8,581)
{5,375)
(2,578)
(8,784)
(6,461)
(15,715)
(3,615)
(6,461)
(13,933)
(8,841)
(32,659)
(~,250)
(145,505)
(96,0561
(90,8581
(65,237}
(67,5551
(61,940}
(69,885) -(41;744)
(66,206)
(75,639)
(83,206)
(44,559
(114,180)
(68,5561
(64,233)
(46,811}
(55,520}
(54,n5)
(59,885)
(60,206)
(69,639)
(20,000)
tilo,20&l
(69,639)
- -
- s
(100,498
----
- $
1,965
1,250
4,000
(37,715)
(5,615)
(8,671)
--~
--
.. --- (135,0?-0l
(34,944)
(114,180)
(68,5561
(64,233)
(46,811)
{55,520)
(54,n5)
(59,8851
(34,944}
. (63,500!
(62,667)
(284,750)
(20,000)
(83,206) . -- 1~.559)
- -- --
Restructuring:
--------
1.5
16
17
18
DIP Fees
DIP Interest
legal, Restructuring and US Trustee Fees
-----Ut111ty Deposits
19
capital Event
20
Principal Payment to DIP Lender and Alpine Bank
21
Total Restructuring Co>ts
~eglnnlng Cash
rota! Cash Flow Before DIP
rerm Loan Draw
:ndlng cash
------
(62,~~?!
(275,000)
(20,000)
1,800,000
-
------
----
1,378,833
- ... (83;'206)
1,334,274
(114,180)
(68,556)
(64,233)
2.938,298
(83,206}
2,855,092
1,334,274
4,189,366
(114,180)
4,075,186
(68,556}
4,006,630__
{64,233)
22
(63,500)
--
--
--
....
(430,917)
--
(477,728)
(55,520}
3,942,397
3,464,669
--(55,520)
T477,72il
(275,000)
- --(20,000)
-
(329,944)
(206,373)
(69,639}
3,294,539
(329,944)
2,984,595
(206,373)
2,758,223
(69,639}
(54,?~ _____ .!~~~885}
-----
(126,167)
I:Z!~OOO}
3,354,424
(59.885)
(62,667)
3,409,149
(54,725)
(63,500}
$ 2,855,092 $ 4,189,366 -$-4;ii75;i86 $4,006,630 s 3,942.397 $ 3A64,669 $ 3,409,149 $ 3,354,424 $ 3,294,539 $ 2,964,595 $ 2,758,223 $ 2,688,584
2 ofS
Printed on 7/9/2012 at 1:43 PM

12/14/12
ReveDues:
.......... --
Golf Revenue (greens, cart fees ,rental, other)
G;;ir5hoPsaie< Food and Beverage

Other Revenue
Total Revenues
Costo/Goods:F&B
<(
l-
iD
Qj
.g
~ "'"
12/21/12
12/28/12
1/4/13
1/11/13
1/18/13
1/25/13
2/1/13
2/8/13
2/15/13
2/22/13
3/1/13
- - - -
1 .
2
3
4
-~
- $
- $
- $
215,625 $
215,625 $
- --1l~Ooil --
12,000
215,625
215,625
215,625
215,625
--~- --
10,800
12,000
12,000
- 10,800
....12,000
12,000
227,625
227,625
(22,182)
(3,446)
(14,788)
-
(6,250)
(8,581)
(7,275)
(2,835)
{8,841)
(8,671)
-
(6,250)
{8,581)
(86,93_7) ___j~;.'~~~)
(22,182)
(3,445)
(14,787)
(20,715)
{3,615)
(10,191)
(74,935)
(22,182)
(6,250) --(22)82)
(6,250)
(3,446)
(8,581)
(3,445)
(3,671)
(5.~74\ f- .. (14,788)
(7,275)
(14,788)
(5,374)
(15.496)
(25,715)
(16,396)
(25,713)
(13,933)
(8,841)
(3,615)
(8,841)
{3,615) - - "(8,841)
(10,191
(32,659)
(8,671)
(10,191)
(10,191)
: - - --_(54,733)
(102,405)
(56,014)
(79,934)
(48,260}
(76,137)
(30,453)
{62,935)
172,892
125,220
171,611
147,691
(30,453
(62,935)
_)22,8!!2
125,220
------- 171,611
147,691
(63,500)
(275,000)
1?_0,000)
-
---:: ..... -
12,000
227,625
12,000
12,000
12,000
227,625
227,625
215,625
215,625
rs ---
12,000
-
12,000
12,000
227,625 - _2_21_,6?-5
227,625
12,DOO
(22,182)
(3,446)
(14,788)
(20,715)
(3,615)
(32,659)
(97,405)
(14,835
{8,841)
(8,671)
(49,543)
(22,182)
{3,445)
(14,788)
(20,715)
(3,615)
(10,191)
(74,936)
(6,250)
(2,727)
(12,248)
-- --:
(11,534)
(2,288)
(6,794)
(41,841)
179,366
130,220
178,083
152,689
(29,841)
179,366
130,220
178,083
152,689
-,
(29,841)
(63,500)
(231,500)
(20,000)
(62,667)
(126,167}
. - - - - -
6
7
8
9
10
11
12
13

Golf Operations
Other Amenities/Misc. Expense.
~-~i_rlte_na_nce - _.... Utilities, Insurance, POA
Property Taxes
.. (32,715)- ........
(3,615)
(10,191)

Cash Flow Before caeJtlll~~dltiJ~~ _
14
capital Expenditures
(76,137)
cash Flow From Operations
..
(6,250)
{3,671)
(7,275
Restructuring:
!Pre-Petition interest
----- - 15 ---
:'=o"'IP'-:'F=-'e"'es====----------+-'1:.:64-------1-----_-i--=="-'_'J-----_+'----_+'----_+'----_+-'-
rnii-i~l~r~5t-
(295,000)
(62,667
(126,167)
(76,137)
(325,453)
(189,102)
Beginning Cash
To~L Cas~ Flow Be!or"._I>!P
TermloanDraw
Endlns cash
--- --- '--2,6ss,S84

(76,137)
Legal, Restructuring and US Trustee Fees

UCCCounselandFinanciaiAdvlsor
Utility Deposits
Capital Event
.
Principal Payment-toolii"Lenderand.Aipine Bnk
Total Restructuring Cosu
11
18
______ ___
1
19
20
21
22
----172,892"".
T25i;500j ----
171,611
(103,809)
53,199
130,220
178,083
2,612,447
2,286,994
2,097,892
2,270,784
2,396,004
(325,453)
(189,102)
172,892
125,220
171,611
$ z,&12,447 $ 2,286,994 $ 2.097,892 $ 2,21o,784 $ 2,396,004 :ri;567,&15
2,567,615
(103,809)
2,463.806
2,463,806
53;1992,s11,oo5
2,517,005
2,647,225
178,083
2,825,307
3 ofS
125,220
::
---~!-----
-130;22o
-
s 2,647.225 s
(142,500
(20,000)
-
(162,500)
(63,500)
(62,667)
(126,167)
(9,811) _ ....1~?1
2,825,307
(9,811)
s 2 815,496
2,815,496
(156,007)
$ 2,659,489
Printed on 7/9/2012 at 1:43PM

For the Weeks Ended June Z9, ZOlZ June ZS, Z013
3/15/13
3/8/13
Revenues:
3/22/13
4/5/13
3/29/13
4/12/13
4/19/13
4/26/13
5/3/13
5/10/13
5/17/13
5/Z4/13
----
Golf Re\lll_~-~-~_(greerl~~" fees ,rental, other)

Golf Shop Sales
Food and Beverage
Other Revenue
Total Revenues
Cost of Goods: F&B
--~
- $
- $
- $
4
5
12,000
1_2,000
12,000
12,000
12,000
(22,182)
(3,446)
(14,788)
(6,250)
(1,887)
(14,148)
12,000
12,000
-
16,000
12,000
12,000
- $
- $
12.000
16,000
(22,182)
(6,844)
(28,060)
(10,000)
(4,691)
(29,988)
(32,249)
(3,615)
(32,659)
(6,7_9.~) ____
(7,286
(3,856)
(10,191)
"----- ---
16,000
-
- $
- $
16,000
16,000
16,000
1_6,_ooo
(26,182)
(14,358)
(34,400)
(10,000)
(4,690)
(29,998)
(29,182)
(19,568)
(32,500)
(1,637)
(23,715)
(5,615)
(32,659)
16,000
--
$ -
- $
1,875
300
19,200
5,250
400
20,000 ---
20,~-
21,375
25,650
28,325
(10,000)
(16,750)
(3,794)
(10,674)
(17,219
(34,400)
(6,310) -----(2;137)
(2,805)
(30,718)
(1,405)
(5,615)
(6,794
(8,671)
(10,000)
(8,978)
(17,219)
7,325
1,000
------~~
---~-----
~-"~~!f.:~everage Operations
6
7
8
9
10
11
12
13
Golf Operations
-< -.,
1-Ill
"'
"'0

Utiiiti;S, lnsura~Ce.. POA
Property Taxes
Cash Flow Before CaP.I~~~~P.end~!I!S_
(3,615)
(32,659)
(25.715)
(3,615)
(6,794)
(3,006)
(2,285)
(89,938)
(32,472)
(125,609)
(66,012)
(77,938)
(20,472)
(113,609)
(50,012)
(90,405)
Capital Expenditures
Cash Flow From Operations
(33,245)
14
(90,405)
(33,245)
- ------
(77,_9_38j -
_ _(32,71~! -- - - (7,285)
(5,615)
(3,856)
(8,671)
(10,191)
(121,941)
(66,020)
(144,876)
(105,941)
(50,020)
-----(ii8;&i6j I
--
(113,609)
(50,012)
(105,941)
(50,000)
(100,020)
------
_j63,S~
(62,667)
(131,500)
(20,000)
- --(277,667)
(20,000)
(~72)
---
(48,327)
(2,805)
(1,406)
(6,794)
iios;965) -- (48,002)
(26,952)
(83,315)
(26,952)
(83,315)
(128,876)
---~
(19,677)
- i
(19,677)
----- - - - - -
Restructuring:
DIP Fees
DIP Interest
Legal, Restructurlng and US Trustee Fees
UCC Counsel and Rnancial Advisor
Utility Deposits
Capital Event
Principal Payment to DIP lender and-Alpine Ban-k ---Total Restructuring Costs
15
16
17
18
-~-----------
19
20
21

Besinning Cash
rota! Cash Flow Before DIP
Loan Draw
Ending Cash
(12,000)
(2,289)
(8,671)
l--(2'5;71~)
(1E2_,~_?l ~-~-(45,245)
.il
(22,182)
(6,250)
(6,844)
(1,887)
(24,788) ---- (12,250) -
--
------ -
(90,405)
(33,245)
c---z;ss9:,;ia9
(90,405)
2,569,084
(33,245)
(167,500)
(20,000)
(63,500)
(62,667) ------
...
--
(126,167)
------ ---- ....
----,265;4i81 . --ii66,639)
(113,609)
(50,012)
(105,941}
(377,687)
2,103,762
(113,609)
1,990,153
(50,012)
1,940,141
(105,941)
(187,500)
---
------
(7!;,~
(20,000)
.-
(95,000)
(128,876)
(26,952)
__j_B~~?l
-- (114,677)
1,834,201 - - 1,456,514
(377,687)
(128,876)
1,327,638
(26,952)
1,300,686
(83,315)
1,217,371
(114,677)
--
--~--
ferm
22
2,535,839
(265,438)
2,270,401
(166,639)
$ 2.569,084 $ 2,535,839 $ 2,21o:4oi . n:;io3,762 $ 1,990,153 $ 1,940,141 $ 1,834,201 $ 1,456,514 $ 1,327,638 $ 1,300,686 $ 1,217,371 $ 1,102,694
4 ofS

5131113
6l14ll3
6l7ll3
6121/l3
TOTALS
6128113
f-::-----Revenues:
Membership Dues Social 8<. (i()i!________ _
1 I$
(greens, can fees ,rental, other)

Golf Shop Sales
Food and Beverage
Other Revenue
Total Revenues
3
4
5
~.lf..~_evenue
Cost of Goods: F&B
-Is
-(_$_
9,300 --9,750
1,300
2000
20,000
21,000
9,750
2,000 21,000
30,600
32,750
32,750
-I$
-I$
9,750
2,000
21,000 ----- 21,000
32,750
32,750
iii
I
1ij
3,394,300
(33,9o7Jr
j~ull~lnf!Malntenance
U6,25Z
621,570
- -----
Golf Operations
(General I Administrative I Management
1-
572,236
9,750
- -----~I?!J!l-
<
2,084,237
9
10
11
12
13
Utilities, Insurance, POA

PropertyTaes
jTotal Operational Disbursements
Cash Flow Before Capl~l-~_!!ndl~r:e~----
(60,000)1
(129,807)1
(95,270)1
----------f1s[
(63,500)1
-I
-I
-I
______-_,..
.
-~
-
-~
-
(20,000)1
-
I 14 I
1
--DIP Fees
DIP Interest
legal, Restructuring and US Trustee Fees
(1D_O'-~?l~(_gB,020)j
(95,270)1
leash Flow from Operations
Restructuring:
-~,000)1
(20,044)
(4,838)
(32,659)
-
(69,807)1
Icapital Expenditures
1Pre-Petltlon Interest
(2,137)1
(23,715)
(5,615)
(6,794)
-
1-
Utility Deposits
19
-I
-- (784,988)
__ _{l_!l,797)1-~(173
1,7
31=3~)1---:~=:t-~;:-'::'=::-=:;;J
(32,500)
(35,369)
(3,237)1
(1,000>1
(3,237)(
(55,199)
(37,715)
(8 511)
(25,717)
(1,096,583)
(5,615)
(4,838)
(5,619)
(286,272)
(10,191
(8,671)
(10,191)
(810,416)1
----(431,890~
(141,962)1
(80,702)1
(130,816)1
(5,381,586)1
(109,212)1
(47,952lj
-1
f109,~E!j ____(47,952)1
(98,066)1
(1,987,286)1
(60,000)1
(158,066)1
(28(000)
(2,272,286)1
(63,500)1_ J?62,oiiiJil
(188,000)
(694,936)
- if233,075)
-~
-
(220,000)
(32,000)
1,800,000
(2,330,0ll)
(255,97411-

Beginning Cash
Total Cash Aow Before DIP
1,102,694
--19s;27ol-
(109,212)
751,451
846,721
(142,952)
642,239
(4,602,297)
(284,232)
499,287
117,352
i~r.;;io-.-n-o~- =:::=--------lf--t---==:....:..<t--'='=:..=!'t---'==:=tt-----":..='=if--'=-=:!.f-_,~~:'i
Endlnceash
5 ofS
EXHIBITB
Week2
Week1
Revenues:
Week3
Week4
TOTAL
85,057
6,500
12,500
$
$
$
$
$
$
500
12,500
$
$
$
$
$
$
500
12,500
16,200
TOTAL REVENUES
13,100
180,207
$
$
$
$
$
$
500
12,500
Golf Shop Sales

Food and Beverage
$
$
$
$
$
$
Cost of Goods: F&B

Golf Operations
Food & Beverage (coffee stations, lunch, dinner)
TOTAL COST OF GOODS
$
$
$
(8,218} $
(4,716} $
(12,934} $
167,274
Other Revenue - member past due accounts, collections

Member trade revenues & dues A/R
Public Play
Golf Revenue (greens, cart fees ,rental, other)
Net Revenue
19,800
35,000
8,250
Operating Expenses:
Golf Operations
Golf Course Maint
Clubhouse Staff; F & B
General I Administrative I Management
IT
HR
Engineering
Marketing
Sales Staff
Commissions on Sales 3%
Legal
Recreation (note 2)
Utility Deposit
Fixed (Insurance, leases, property tax, POA)
(9,800) $
$
$
$
$
$
$
$
$
$
$
$
$
$
(14,000} $
TOTAL OPERATION EXPENSES
$
EBITDA
Origination fee
Interest Expense- D.I.P. financing
DIP Loan- In Process
Legal, Restructuring and US TRUSTEE FEES
Keen Origination Fee
Capital Exp- Graham Ditch
Net Cash Flow
Cumulative Cash Flow
$
$
$
- $
(2,105} $
- $
- $
- $
- $
(100) $
(13,896}
(800}
(32,000)
(28,930)
15,300
30,000
5,500
10,900
74,700
(6,745} $
(3,924} $
(10,669) $
64,031
(16,605} $
(65,620} $
{13,407} $
(16,407) $
$
$
$
$
(2,500) $
$
- $
(2,062) $
{800}
(15,144}
(7,874}
-
16,200
25,000
5,500
10,900
70,600
(5,795) $
(3,924} $
(9,719) $
60,881
(9,850)
(14,000) $
$
(2,200} $
{800} $
$
$
- $
- $
- $
(1,500) $
- $
(2,105)
10,200
75,150
{6,793} $
(3,672} $
(10,465) $
64,686
67,500
120,000
25,000
45,100
400,657
(27,550}
(16,236}
(43,786)
356,871
(60,199)
{172,972}
(20,817} $
(4,600} $
(15,144) $
(8,825) $
(53,320)
(7,000)
(30,288)
(20,909)
(2,500) $
$
$
(26,814}
(5,000)
-
(3,028} $
(1,500)
(5,190)
(9,600)
(15,000)
(39,520) $
(93,050)
(101,631) $
(150,019}
(45,455} $
(211,137) $
(508,242)
(146,452} $
(151,371)
$
$
$
$
(94,000}
(752,000}
65,643
{85,988) $
$
$
8,000
50,000
(23,944} $
(79,352) $
{13,407} $
15,426
(94,000)
$
$ (752,000}
$ 4,700,000
85,057
(125,000}
(94,000)
{40,000)
(146,452)
3,785,643 $
(85,988} $
(109,574) $
$3,443,629
$3,785,643
$3,699,655
$3,590,081
Footnotes:
1. Witholdings from employee compensation for 401k contributions are pass through items and hence are not
reflected as part of the budget.
2. Recreation expense represents expenses incurred in connection with various non-golf activities
such as tennis, swimming pool and personal training.
30,000
5,750
$
$
$
$
$
$
$
$
4,700,000
(125,000}
(94,000}
$
$
3,483,629
$0
Exhibit A
Budget
CERTIFICATE OF SERVICE
I, William P. Bowden, hereby certify that, on July 12, 2012, I caused one copy of the
foregoing to be served upon the persons on the attached service list via first class U.S. Mail, or in
the manner so indicated.
William P. Bowden (#2553)
{00074510;vl }
Cordillera 2002 Service List
HAND DELIVERY
Michael R. Nestor, Joseph M. Barry
Donald J. Bowman, Kenneth J. Enos
Young Conaway Stargatt & Taylor LLP
1000 N. King Street, Rodney Square
(Counsel to the Debtor)
Christopher Celentino, Esq

Erika Moribita, Esq.
Mikel Bistrow, Esq.
Foley & Lardner LLP
402 W. Broadway Suite 2100
San Diego, CA 92101
(Counsel to the Debtor)
HAND DELIVERY
Mark S. Kenney, Esq.
Office of the United States Trustee
844 N. King Street, Suite 2207
Lock Box 35
HAND DELIVERY
Matthew P. Ward, Esq.
Ericka F. Johnson, Esq.
Womble Carlyle Sandridge & Rice, PLLC
222 Delaware Avenue, Suite 1501
(Northlight Fiancial, LLC)
HAND DELIVERY
Damien Tancredi, Esq.
Cozen & O'Connor, PC
1201 N. Market Street, Suite 1400
(Cordillera Transition Corporation)
Harlan W. Robins, Esq.

Dickinson Wright PLLC
15 N. 4th Street
Columbus, OH 43215
(Northlight Financial LLC)
Vincent M. Marriott, III, Esq.

Sarah Schindler-Williams, Esq.
Ballard Spahr LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103
(Alpine Bank)
Melissa Maxman, Esq

Ronald Wick, Esq.
Cozen & O'Connor PC
1627 I Street, NW, Suite 1100
Washington, DC 20006
(Cordillera Transition Corpo_ration)
Ron Garfield, Esq

Garfield & Hecht, P.C.
601 East Hyman A venue
Aspen, CO 81611
(Alpine Bank)
Carl A. Eklund, Esq

Ballard Spahr LLP
Denver, CO 80202
(Alpine Bank)
Brad W. Breslau, Esq.

Cozen & O'Connor PC
Denver, CO 80202
Kristi A. Katsma, Esq.

Dickinson Wright PLLC
500 Woodward Avenue, Suite 4000
Detroit, MI 48226
(Northlight Financial LLC)
Arthur J. Abramowitz, Esq.

Cozen & O'Connor PC
Liberty View, Suite 300
457 Haddonfield Road
Cherry Hill, NJ 08002
)064775l;v2}
HAND DELIVERY
Tobey M. Daluz, Esq.
Joshua E. Zugerman, Esq ..
Ballard Spahr LLP
919 Market Street, 11th Floor
(Alpine Bank)
Alpine Bank
A Colorado Banking Corporation
Attn: President, Officer of Managing Agent
141 E. Meadow Drive, Suite 210
Vail, CO 81657
James J. Holman, Esq

Duane Morris LLP
30 South 17th Street
Philadelphia, PA 19103-4196
(David A. Wilhelm)
Colorado Dept. of Labor & Employmen

Attn: Bankruptcy Unit
251 East 12th Avenue
Denver, CO 80203-2202
Colorado Department of Revenue

Attn: Bankruptcy Unit
1375 Sherman Street, Room 1375
Denver, CO 80261-0001

Attn: Dan White
97 Main Street
Suite E202
Edwards, CO 81632
Colorado Dept. of Labor & Unemployment

Attn: Bankruptcy Division
P.O. Box 956
Denver, CO 80201-956
Department of Treasury
Internal Revenue Service
Ogden, UT 84201-0030
Delaware Division of Revenue

Attn: Randy R. Weller, MS NO 25
820 French Street, 8th Floor
Secretary of Treasury
Attn: Officer, Managing Agent or General Agent
820 Silverlakd Blvd., Suite 100
Dover, DE 19904
Internal Revenue Service

Insolvency Section
2970 Market Street
PO Box 7346
Securities & Exchange Commission

SEC Headquarters
Attn: Office of the General Counsel (Bankruptcy)
100 F Street, NE
Secretary of State
Division of Corporations
Franchise Tax Division
401 Federal Street- Suite 4
P.O. Box 898
Dover, DE 19903
HAND DELIVERY
Ellen W. Slights, Esq.
Assistant United States Attorney
United States Dept. of Justice
1007 Orange Street, Suite 700
POBox2046
)064775l;v2}

Attn: Office of the General Counsel (Bankruptcy)
Centeral Regional Office
180 I California Street, Suite 1500
Denver, CO 80202-2656
US Bank
Attn: President, Officer of Managing Agent
34353 Highway 6
Side c-101
Edwards, CO 81632

New York Regional Office
Attn: George S. Canellos, Regional Director
3 World Financial Center, Suite 400
New York, NY 10281-1022
David Wilhelm
97 Main Street
Suite E202
Edwards, CO 81632
U.S. Secretary of Treasury

Attn: Office ofthe General Counsel (Bankruptcy)
1500 Pennsylvania Avenue, NW
Michaels S. Kogan
Kogan Law Firm, APC
1901 Avenue ofthe Stars, Suite 1050
Los Angeles, CA 90067
(Counsel to Certain Homeowners)
HAND DELIVERY
Mark D. Collins
Zachary I. Shapiro
Richards Layton & Finger PA
One Rodney Square
920 North King Street
(Members of Certified Class)
Joseph J. Wielebiniski, Russell L. Munsch

Jay H. Ong, Zachary Z. Annable
Munsch Hardt Kopf & Harr PC
3800 Lincoln Plaza
500 N. Akard Street
Dallas, TX 75201-6659
(Counsel to the Official Committee ofUnsecured Creditors)
Garry R. Appel
Appel & Lucas, PC
Denver, CO 80202
(Members of Certified Class)
HAND DELIVERY
Richard W. Riley
Duane Morris LLP
222 Delaware A venue, Suite 1600
(Counsel to David A. Wilhelm)
HAND DELIVERY
MarkMinuti
Saul Ewing LLP
222 Delaware Avenue, Suite 1200
P.O. Box 1266
.
(Counsel to the Official Committee of Unsecured Credttors)
James M. Holman
Duane Morris LLP
30 South 17th Street
(Counsel to David A. Wilhelm)
J064775l;v2 }

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UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

Cordillera Golf Club, LLC,

Case No.: 12-11893 (CSS)

Related Docket No. 59

OBJECTION OF CORDILLERA METROPOLITAN DISTRICT AND CORDILLERA

In the DIP Motion, Debtor requests authority to obtain secured post-petition

In return for the $4.7 million DIP Loan, the

Golf Revenue for 2012 appears to be based on number of rounds for

the DIP Budget reflects the expenditure of $285,000 in undefined capital

there is no explanation in the DP Budget for the receipt of $1,800,000.00

the Debtor needs to provide detail to the General/Administrative/

Cordillera Golf Club LLC

Golf COurse Maintenance

___ __ ____:_ r-------_(63,500)

Total Cash Flow Before DIP

(;~Flow From Operations

Food & Beverage operations

Membership Dues Social & Golf

22 $ 234,683 _$ 11:!,1117 $ 20,!70

--- --: --- -- -- :

55,'\6_11 _1_____173,891 $ 4,!~ $ 4,119,~ $ 4,153,658 $ 3,746,~ $ 3,567,82Lci_3,475,692 _1_2,938,~__!_

Printed on 7/9/2012 at 1:43 PM

Cordillera Golf Club LLC

Membership Dues ~~~_11<-~-~! _____

Gel!! Revenue (greens, cart fees ,rental, other)

10,000 ----a; zoo

Food & Beverage Operations

C.sh Flow Before C.pltal Expenditures

(54,?~ _____ .!~~~885}

Printed on 7/9/2012 at 1:43 PM

Cordillera Golf Club LLC

Membership Dues Social & Golf

Golf Revenue (greens, cart fees ,rental, other)

G;;ir5hoPsaie< Food and Beverage

Food & Beverage Operations

Total Operational Disbursements

cash Flow From Operations

Total Cash Flow Before DIP

--- --- '--2,6ss,S84

Legal, Restructuring and US Trustee Fees

Printed on 7/9/2012 at 1:43PM

Cordillera Golf Club LLC

Membership Dues Social & Golf

Golf Re\lll_~-~-~_(greerl~~" fees ,rental, other)

Cost of Goods: F&B

Other Amenities/Misc. Expense

Total Cash Flow Before DIP

------ ---- ....

Printed on 7/9/2012 at 1:43PM

Cordillera Golf Club LLC

(greens, can fees ,rental, other)

Cost of Goods: F&B

Food & Beverage Operations

Utilities, Insurance, POA

Cash Flow Before Capl~l-~_!!ndl~r:e~----

leash Flow from Operations

UCC Counsel and Financial Advisor

Total Cash Flow Before DIP

Printed on 7/9/2012 at 1:43PM

Golf Shop Sales

Cost of Goods: F&B

Other Revenue - member past due accounts, collections

_ ____:_ r-------_(63,500)