Re: Ponderosa Bankruptcy/Apollo Bankruptcy, etc.

UPDATE: January 20, 2005

Apollo Bankruptcy - Abuse of Bankruptcy by Novelli Companies

The Ohio bankruptcy court has finally agreed with courts in California, Michigan, and others that Novelli is abusing the bankruptcy system. The Ohio bankruptcy, filed more than 2 years ago has finally been converted to a Chapter 7 liquidation.

The court found that:

  • Debtor co-mingled Debtor's bank accounts with other non-bankrupt related entities;

  • Debtor has entered into transactions that required Court approval pursuant to para 363(b) of the Bankruptcy Code without obtaining such authorization; and

  • Debtor has used its bank account, which is protected from attachment and levy by 5 362 of the Code, for the benefit of non-bankrupt related entities.

National Association for Members (NAM)
of Campground Resorts, Condominiums, and Timeshares

4740 Silver Oak Street
Dayton, OH  45424-4650
(937) 236-2882
http://www.natlassoc.org
email: chmn@natlassoc.org

November 28, 2004

 

Subject: Bankruptcy of

Apollo,
Travel America,
Ponderosa,

Olando Resort (Clermont),
All Seasons Resorts (ASR)
Etc.

The subject companies have abused many of their members and played the bankruptcy courts like a fiddle for many years. That chapter of their activities may be coming to an end. Several events appear to be combining to end their abuses:

  • Bankruptcies have been dismissed or thrown out in California and Michigan that we know of.
    There may have been others.
  • Apollo, alleged parent of some of these companies filed bankruptcy in Youngstown, OH, alleging that their only asset was the Orlando Resort real estate in Clermont, Florida. The mortgage holder foreclosed with the blessing of the bankruptcy court and is in the process of selling that campground.
  • Apollo's other creditor, the US Government, is pursuing lawsuits for back taxes against all of the subject companies alleging that they are ALL alter-egos of just one entity controlled by Mr. Raymond Novelli.
  • A bankruptcy motion has been made to convert the bankruptcy in Youngstown to a 'Chapter 7' liquidation. It appears that any assets of the 'real' debtor, Mr. Novelli and his cronies, might be vulnerable to consolidation, seizure, and liquidation by the creditors.

This time — they are not marching their bevy of heavy-handed, in-house attorneys into war with some poor little old lady who cannot afford to fight back or small town attorney who does note know how or cannot afford to go after the assets of this abusive organization.

This time they seem to have picked a fight with someone who is known for tenacity and thorough prosecution of their cause: the US Government.

There has never been any question that the Novelli companies routinely move equipment, people and money from company to company in the course of everyday business. This includes their most lucrative asset, the campground memberships and the millions of dollars they produce annually.

So what does that mean to us?

It may mean the end of the extortionist practice of demanding money from people for the rest of their lives, people who want nothing to do with them.

It may mean the eventual end of deceiving and downright fraudulent sales and collection practices by some of the companies.

It may also mean the campgrounds that survive might eventually be run by a more reputable organization.

Special Note for Ponderosa Members:

The mortgage holder in the Ponderosa bankruptcy and the county taxing authority appear to be engaging in a plan that will take advantage of the fact that you do NOT have an attorney to represent your interests in the Ponderosa campground.

  1. How will you be notified of court actions that could strip you of ALL rights to your UDI, etc.
  2. What is the value of your UDI?
    1. Do you have any ownership rights in the campground?
    2. What can you do, if anything, to protect your Investment in your campground?

If the answers to these questions are important to you Ð you must consult an attorney, quickly, not just the bankruptcy trustee or the attorney for the campground or mortgage holder, but YOUR OWN attorney. Your attorney should be experienced in both bankruptcy and real estate law.

You may want to get together with other people in your campground and find an attorney to represent you now, if it snot too late.

Sincerely,

//s//

Dan Hopper, Chairman