OMAHA, Neb. - The company that owns the failed Great Adventures Water Resort filed for Chapter 11 bankruptcy last week, leaving its lender, hard-pressed Centris CU, potentially holding the bag for millions of dollars in losses.
Great Adventures Water Resort was formerly a Days Inn and had been scheduled to open last fall, but construction was halted last August.
The bankruptcy filing came a day before the state’s largest credit union, which holds the senior lien on the project, was scheduled to sell the property, thus cancelling the sale.
The court filing indicates that Centris has more than $10.6 million in exposure to the developer, Kendall Hospitality LLC, $6.3 million of it secured. The credit union holds a $5.7 million senior lien on the property.
Centris President Don Mahan resigned from the $380-million credit union at year-end following a $6.1 million loss for 2007.
Kevin Parks, who was hired as Centris CEO a month ago, said they have no current plans for the auction of the property and that will be determined by a reorganization plan to be filed by the debtor. He refused to comment further. “I’m not at liberty to disclose confidential information on a borrower,” he told Credit Union Journal.
