We Fairfield Harbour Property Owners have received, or will receive, soon, a ballot(s) asking us to accept or reject the latest bankruptcy plan proposed by MidSouth, present owners of the amenities. By all means, read it through, but please focus on some very important details on page 9, summarized for you, below and at this site http://www.factsaboutmidsouthbankruptcy.com/
Presently, Mid South is legally obligated to maintain the amenities it owns, and has contracted to reserve them for recreational use until 2023, when Exhibit E expires. Mid South has maintained its claim that, without amenities fees, it can’t afford to maintain the property it owns and is now in Chapter
11. As the Debtor, Mid South is required to submit a reasonable plan for reorganization. See https://fhfacts.org/pdf/FACTS%20bankruptcy%20report.pdfs for a review of Mid South’s original plan. The Fairfield Harbour community soundly rejected this original plan, as did the court. The court then directed both the POA and Mid South to propose plans for this session.
Mid South’s latest plan is as unrealistic, and as unacceptable as its previous plan.
MidSouth now proposes to sell all of its assets at public auction. Specifically, the Debtor (Mid South) shall request a ruling that determines, among other things, that the highest bidder at the public auction shall own all of the Debtor’s assets free of any liens, encumbrances, claims and interests of record, and any contractual or affirmative covenant obligation that requires the owner of the property to (a) maintain the property, (b)operate the amenities at the property, or (c) allow access to any third party to maintain or operate the property. (Pg 9)
Briefly, if Mid South has its way, we, the FHPOA, will receive 2% of the sale price, and lose all control over how those 365 acres in the heart of Fairfield Harbour are used., or abused
- Neither MidSouth nor the new purchaser would be legally obligated to maintain the properties.
- Exhibit E – the covenant which requires that those properties be protected and maintained as recreational lands would be nullified.
- Our Supplementary Declarations of Restrictions, our Master Declaration of Fairfield Harbour, and the Declaration of Covenants, Conditions and Restrictions for Harbour Pointe Golf Course, Harbour Country Club and Harbour Recreation Complex would no longer protect those properties.
If we do not vote to REJECT their proposal, we give Mid South (or the successful bidder) the freedom to do whatever it wants with the 385 acres it owns within our community borders. If we do not vote to REJECT their proposal, we will be giving up our homes, our property values, and the future of our community.
PLEASE, reach out to your neighbors, friends, and everyone you meet. Urge them to vote and
REJECT Mid South’s proposal.
Remember that not everyone uses a computer; not everyone receives POA posts; not everyone is on the various forums, but EVERYONE NEEDS TO REJECT THE PLAN. Please, bring your ballot to the POA office for free faxing. Sign up for the June 23 bus to Raleigh . Stay informed; spread the word!
See next page for ballot sample.
PLEASE FAX YOUR COMPLETED BALLOT FROM THE POA OFFICE! (NO CHARGE) DEADLINE IS APRIL 12!