Out of Bankruptcy – Reorganization Plan Approved

The following  news was shared with the “Friends of Lake San Marcos,” and I thought it was important to get the message out to the Lake San Marcos community.

“Today Lake San Marcos received some of the best news it has had in the last 10 years….CDC’s Reorganization Plan has been approved by the Federal Bankruptcy Court.

Initially, the depth and breadth of the problems facing CDC were so great, I was of the opinion they could not be solved.  Fortunately, in the middle of the bankruptcy CDC was sold to new ownership.  It has taken incredible fortitude, financial acumen, and negotiating skill for Pino Vitti, the new owner, to have overcome these hurdles.  Congratulations to him and his staff.  Today is really the start of a new era for CDC.

The Lake San Marcos Community Association has played a significant role in supporting the new ownership of CDC with the Bankruptcy Court, the Regional Water Board, the City of San Marcos, San Diego County, Vallecitos Water District, the Telesis Credit Union and numerous other organizations.

The net effect of the Reorganization Plan approval is that now CDC can start paying back its creditors, can borrow to make improvements in our facilities, and can again direct its financial resources as it chooses.

For the community, it means the years of delay are over, and we can hope to see long awaited improvements begin to take shape.

CDC still has many hurdles to overcome.  They have to finish the lake testing, develop a remediation plan, and actually get the lake cleaned up.  They have more docks to build. They have to prove to lenders that they are on a firm financial footing, and the income generated from the Lake and Lodge leases and other sources are reliable enough to underwrite long term loans for rebuilding the community facilities and cleaning the lake.  They have to develop a plan for remodeling or replacing our aging buildings and pools that meets the needs of the community while remaining affordable.  There are many challenges ahead for CDC, but now they can move forward to work on those new challenges without the stifling control of the Federal Bankruptcy Court.

Thanks to all who were involved in these efforts over the years.  In particular Eli Whitney, John Andrew, Bob Kreiss, Jim Murphy, and Ken Lounsbery, but also many, many others.

Wayne Widener

Friends of Lake San Marcos”

And I personally would like to thank “Wayne Widener” who works very hard to keep us all informed.

For more information see “Lake San Marcos Bankruptcy Update.”