An update on South Bay CC (formerly Middle Bay CC) ...
In a decision dated 12/5/2013 The US Bankruptcy Court for the Eastern District of NY has held that the license granted to South Bay in trying to secure the lease to run the property is terminated and they must vacate the premises (in 14 days from the order) based upon numerous factors including a determination South Bay breached their contract by failure to pay the necessary money or follow restoration requirements under the agreement. While the course was reopened and repairs were made, they were not done per the agreement. The Chapter 7 Trustee is once again running the show as it relates to the lease to protect potential creditors. No indication as to what will happen. A damages hearing for the landlord/trustee will be held in mid January.
Here are the holdings by the court: [1]-When the country club (with an interest in the lease between debtor and the landlord) failed to make the required payments for rent and other matters, it was in default of its monetary obligations. The Trustee and landlord did not need to accept late performance; [2]-Inter alia, the club's inability to obtain and maintain proper records of funds spent constituted a breach of a material provision under the Agreements; [3]-The club had not shown that it was capable of adhering to its obligations under the Agreements in the future. Accordingly, forfeiture of its license and its interest in the lease was warranted; [4]-The 10-day notice requirement under N.Y. Real Prop. Acts. Law § 713(7) (2013) had been more than adequately satisfied; [5]-The Trustee was well within his rights to exercise his business judgment to terminate the license and to not deliver the lease to the club.