Two companies submitted offers to buy the Seven Peaks Resort Water Park and Seven Peaks Resort Golf Course, respectively, this week in U.S. Bankruptcy Court.
Nu Skin International Vice President Brooke B. Roney, listed as the general partner of B & B Properties Co., offered $1.95 million for the water park, according to documents filed Dec. 22. He also wants to buy a nearby storage shed for $50,000. Roney heads Nu Skin's product distribution division.Cascade Co., headed by John Brereton, made a $2.1 million offer on the 18-hole golf course.
The sales are subject to bankruptcy court approval. A hearing hasn't been scheduled.
The 82-acre golf course and 28.3-acre water park sit below the foothills above Provo at the east end of Center Street.
Both recreational facilities are assets of Southern American Insurance Co., formerly owned by Victor Borcherds. The Utah Department of Insurance took over the company nearly two years ago because Borcherds failed to clear $5 million in loans made to his hotel, water park and golf course. Attorneys for the insurance department are currently liquidating Southern American's assets.
WordPerfect co-founders Alan Ashton and Bruce Bastian and company vice president Duff Thompson joined with Kahler Corp., of Rochester, Minn., to buy Seven Peaks Resort Hotel for $6.1 million in September. It is now known as Provo Park Hotel.
When state officials began foreclosing on the mortgages in the spring of 1992, Victor and Suzanne Borcherds transferred ownership of the hotel, water park and golf course to three new companies and declared bankruptcy. The companies were made up to keep the "Seven Peaks" name out of court documents. Victor Borcherds called the state's action a "hostile takeover."
The bankruptcy court rejected the Borcherds' reorganization plans for the companies and ordered the assets sold. About $4 billion in claims were filed against Southern American, but state officials pared that down to about $500 million. Proceeds of the sale of Borcherds' assets will go to pay attorneys' fees and insurance policy holders.
Suzanne Borcherds also filed personal bankruptcy. The court last month ordered her to sell the couple's Alpine home, cars, jewelry and other valuables to satisfy outstanding debts.
In addition to the water park and golf course, state officials are looking to sell two other properties formerly held by Victor Borcherds - a building east of the water park that housed Southern American and property used to begin construction of a funicular. The cable railway was to have transported skiers to Borcherds' proposed ski resort at the base of Maple Mountain.
Sales of those two assets will be considered in 3rd District Court in Salt Lake City and 4th District Court in Provo, respectively.