Mount Holly gets temporary reprieve
The developers of a proposed upscale resort in the mountains of Beaver County have received a breather: A federal judge has postponed a trustee sale of their property.
Mount Holly Partners, LLC; Ares Funding, LLC; and Marc Jenson, asked for a restraining order in U.S. District Court claiming the defendants -- AMDS GHoldings, MHU Holdings, Richard D. Flint and Steven J. Vuyovich -- breached contractual obligations, forcing the developers to default on payments.
The plaintiffs also allege the defendants want to fraudulently take control of Mount Holly assets.
Mount Holly was formed in 2006 by Ares and a third partner, CPB Development, to build a private ski and golf resort on 2,000 acres in the Tushar Mountains east of Beaver.
The developers allege defendants MHU failed to make required payments pursuant to an operating agreement. They also allege an MHU affiliate acquired all interests in a loan to Mount Holly that was secured by the property scheduled to be sold at a trustee's sale Friday and on June 5.
In her order granting a temporary restraining order halting the sales, U.S. District Judge Tena Campbell wrote the developers would suffer irreparable harm if the property were to be sold, outweighing loss to the defendants.
The judge scheduled a hearing for May 22 on granting a preliminary injunction.