Two campgrounds (Ponderosa [OH] and Delta Isle [CA]) and a stock holding company (Apollo [CA]) run by Ray Novelli have filed bankruptcy in Youngstown, OH. How does this affect RV campers?

At a recent meeting in Youngstown, OH, the attorney for Mr. Novelli (aka Ponderosa, Delta Isle, etc.) made his and Mr. Novelli’s position clear – they don’t think campground MEMBERS are creditors and that these members are not entitled to file claims, vote on the reorganization plan, or otherwise participate in the bankruptcy proceedings. The Trustee, Mr. Rippy wasn’t so sure.

He needs to hear from you. Mr. Rippy’s address is:

Office of the US Trustee
200 Public Sq., Ste. # 3300
Cleveland, OH 44114
(216) 522-7800

We (NAM) are convinced that you DO have a right to file a claim and have a say in what goes into any plan for reorganization. Such a plan, if approved by the Judge, can dramatically change or limit your rights to use your site or the fees you will have to pay.

This RIGHT has been reinforced in many bankruptcies of “Membership Campgrounds” across the country based on what has been called the “Priority Deposit” rule. Members paid significant amounts of money, in advance, for the promise of future services (the right to camp at a particular campground or on a particular site at a campground).

Do you believe he has a duty to provide future campground services to you?

Do you believe that Mr. Novelli accepted the obligation to honor your contracts, deeds, etc., when he took your site fees, annual dues, etc.? When does that obligation end? Next year, the year after that, 10 years from now? What is the value of those promised future services?