Cyrus company seeks bankruptcy protection

Wildhorse Meadows LLC will be filing for Chapter 11 bankruptcy protection on Thursday, January 20. Wildhorse Meadows owns the land and improvements that are leased by the Aspen Lakes Golf Course and Brand 33 Restaurant.

All are owned by the Cyrus family of Sisters.

Matt Cyrus said: "This filing will not affect Aspen Lakes Golf Course or Brand 33 Restaurant in any way. Aspen Lakes Golf Course, LLC, the company that operates the Aspen Lakes Golf Course and Brand 33 Restaurant is not a part of the Chapter 11 filing. Aspen Lakes will continue to serve Central Oregon as a premier golfing, dining and wedding/event location."

There is no impact on other Cyrus family holdings.

"It is unfortunate that the current economic and regulatory environment has compelled Wildhorse to restructure under Chapter 11, but that is the purpose of the law and we are confident that Wildhorse will succeed in its reorganization," said Al Kennedy, the Portland attorney with the firm Tonkon Torp LLP, working with the Cyruses.

The creditors of note are Premier Bank, the Deschutes County tax collector, and a construction company involved with the building of the Aspen Lakes clubhouse.

"The bottom line is that this gives us certainty for the year while we develop a plan to pay our creditors," said Cyrus.

Aspen Lakes Golf Course LLC opened their first nine holes in 1997, and the second nine holes in 2000. The company employs close to 100 people in the summer, with this number dropping to 15 to 20 in the winter months. The annual local payroll is roughly $850,000.

The golf course is surrounded by the Golf Course Estates At Aspen Lakes, a gated housing development of 100-plus homes. Attempts by the Cyrus family to change the designation of the Aspen Lakes property from a cluster subdivision to a destination resort have met with strong local resistance.

The re-designation issue remains unresolved. New state destination resort regulations are expected to be adopted at the state level during the current legislative session.

Homeowners in Aspen Lakes Estates and those with homes in the vicinity of the Aspen Lakes complex have expressed concern over both the potential of a destination resort designation, and over the frequent legal notices in the paper that Wildhorse Meadows LLC was "up for auction."

While the homeowners association owns the common areas and the water wells that supply the housing development, a potential for change in ownership of the golf course remains a serious concern for those that paid a premium to have a home on one of the top rated golf courses in Central Oregon. The homeowners on adjacent properties whose homes look out over the golf complex have expressed similar concerns.

Cyrus indicated that a conference call with Premier Bank was scheduled for Friday, with advance notice going out to Aspen Lake homeowners on the Tuesday before the Thursday filing. The courtesy notice to Aspen Lakes homeowners is intended to answer many of their questions and

concerns.

According to Cyrus, Brand 33 is operating on a normal winter schedule of Wednesday evening through Sunday brunch. The Aspen Lakes golf shop is open seven days a week to schedule summer outings and serve the needs of local

golfers.

Matt Cyrus expressed thanks for local support.

"The Cyrus family is very appreciative of the considerable support it has received from the Sisters community and looks forward to 2011. It is this valuable support that enables Aspen Lakes and Brand 33 to remain active in the community."