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A company that owns The Country Club at Otterkill in Campbell Hall now appears to be facing closure and asset liquidation after it was placed into Chapter 7, according to a U.S. bankruptcy court representative.
News 12 first reported on the financial troubles last week.
Court records show J&K Real Estate Investment Group, which owns the club and holds the lease for the business on Otter Road, filed for Chapter 11 bankruptcy protection twice in the last 16 months but failed to legally further the case during foreclosure proceedings involving TD bank and the Small Business Administration.
A judge ordered the case to be converted to Chapter 7 proceedings, according to a court official on Tuesday.
According to legal documents filed in U.S. bankruptcy court, “Conversion will prevent the debtor from filing a third case to stay the foreclosure and allow for an orderly liquidation of the property. Conversion will also allow an independent fiduciary to investigate the debtor’s business operations.”
The businesses are co-owned by Town of Goshen Supervisor Joe Betro. He declined to comment to News 12 about the legal troubles but posted a statement on the country club’s Facebook page saying The Country Club at Otterkill will remain open and is unaffected by the troubles.
Court records indicate J&K’s sole source of income is $22,000 a month in rent from the country club and that it’s unclear if deposits from current or prospective members are being used to pay expenses, or if members are aware of the bankruptcy proceedings.
Betro previously told News 12 that the business is working with its lenders to resolve the situation and that it has been transparent with members about its financial situation, which he says traces back to COVID shutdowns.
Betro referred News 12 to his attorney, Rory Brady, who is also the attorney for the Town of Goshen, but Brady declined to comment. News 12 was unable to reach the attorney listed for J&K Real Estate Investment Group.
