All Seasons Resorts Files for Chapter 11 Protection

Seeking to escape the crush of about 75 creditors’ lawsuits, All Seasons Resorts Inc., a Costa Mesa-based operator of 12 membership-only campgrounds throughout the nation, has filed for reorganization and protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

The filing, in U.S. District Court in Santa Ana on Wednesday, listed assets of $45.3 million and liabilities of $38.9 million.

Raymond Novelli, All Seasons Resorts’ president and chief executive, said that while the company’s assets exceed its debts, the bankruptcy filing was necessary to sidestep the cost and time involved in defending the company against lawsuits from unpaid creditors seeking a total of about $5 million.

According to Novelli, All Seasons Resorts until recently had been losing large sums of money and was unable to repay its vendors. He said about 75 vendors who supplied marketing and advertising services in 1985 filed suits against the company last year, seeking full reimbursement. The amounts sought in the suits, he said, range from $500 to $740,000.

Novelli took the helm of the company last May after Apollo Group Ltd., a partnership he belongs to, bought a 25% stake in the publicly traded company.

In the fiscal year ended Oct. 31, 1986, All Seasons Resorts lost more than $10 million. However, Novelli said, profits for the first quarter ended Jan. 31 totaled about $400,000.

Novelli said he expects the company to submit its debt reorganization plan to the court soon and he estimated that the bankruptcy could be canceled within 120 days. He said that creditors will probably have to wait from five to seven years for their full reimbursements.