Opinion ID: 3160786
Heading Depth: 2
Heading Rank: 1

Heading: The Ball Four Bankruptcy

Text: In 2005, Ball Four received a $1.9 million loan from FirsTier Bank to expand its sporting facilities and pay off a previous loan. I Aplt. App. 215. The note was secured by various Ball Four assets and Ball Four’s owners Larry and Susan Gentry each personally guaranteed the loan. Id. After four years of struggling with construction defects, underfunding of the project, and an -2- economic downturn, Ball Four stopped making interest payments to FirsTier. Id. After FirsTier called the note and initiated foreclosure proceedings, Ball Four filed for relief under Chapter 11 of the bankruptcy code in 2010. Id. FirsTier filed a proof of claim in the amount of $3,572,158.12. Id. Ball Four proposed a plan of reorganization that provided the bank’s allowed claim would be repaid in full, plus 6 percent interest, over twenty-five years with a five-year balloon payment, and that FirsTier would retain its lien on Ball Four’s property until the claim was paid. 1 Id. at 215–16. Before Ball Four’s Chapter 11 plan was approved in 2011, the Colorado Division of Banking closed FirsTier and the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver. Id. at 215. Later, the FDIC conveyed all rights under the original promissory note to 2011-SIP 1 CRE/CADC Venture, LLC (SIP). Id. Neither FirsTier, FDIC, nor SIP objected to the Ball Four Plan, and it was confirmed in August 2011. Id. at 216. Ball Four’s case was closed in 2013. Id. at 217.