A Silicon Valley investor has secured the deed from a bank for
Ridgemark Golf
&
amp; Country Club’s property and he has threatened the
corporation with foreclosure, according to a letter recently sent
to shareholders and members.
Ridgemark President Mark Davis informed shareholders and members
that John Kehriotis, who owns Santa-Clara based JMK Investments, in
April purchased the corporation’s promissory note from Fremont
Bank. Kehriotis also is a minority owner of the Sacramento Kings
and Arco Arena.
A Silicon Valley investor has secured the deed from a bank for Ridgemark Golf & Country Club’s property and he has threatened the corporation with foreclosure, according to a letter recently sent to shareholders and members.
Ridgemark President Mark Davis informed shareholders and members that John Kehriotis, who owns Santa-Clara based JMK Investments, in April purchased the corporation’s promissory note from Fremont Bank. Kehriotis also is a minority owner of the Sacramento Kings and Arco Arena.
Ridgemark, after many years experiencing financial problems, for the past two years had been particularly aggressive in such resolutions as selling the corporation, joint venture arrangements, equity infusions, refinancing and, since January, Chapter 11 bankruptcy.
The Ridgemark board of directors in March voted to approve pursuit of bankruptcy shortly before being informed Kehriotis had purchased the promissory note on the corporation’s mortgage with Fremont Bank, said Ray Mariottini, a Ridgemark board member.
Kehriotis had demanded payment for default payments and informed Ridgemark the interest rate had kicked in on the note set to expire in 2013.
Ridgemark, however, has negotiated a settlement agreement that would prevent foreclosure proceedings. In exchange, he will accept a “deed in lieu of foreclosure on the real property and an agreed upon foreclosure of his personal property security interest,” according to the letter from Davis. Board members are set to discuss the matter at their next meeting Monday.
Mariottini said he believes “shareholders have been mistreated” because they have not been updated well enough as the situation has progressed with the investor. He also contends shareholders must have a vote on the settlement before it goes forward.
There are about 850 shareholders in the Ridgemark Corp., he noted.
“All through this I keep saying, ‘We need an attorney,'” Mariottini said.
He went on: “I don’t blame Mr. Kehriotis. He’s a business man.”
Mariottini surmised the investor is willing to agree to the settlement because he “didn’t want to go through the foreclosure process.”
“He’s operating this place now. He’s operating the place like it’s his. He has the deed.”
Davis did not return phone calls before press time.
