
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, July 24, 1990                   TAG: 9007240413
SECTION: VIRGINIA                    PAGE: B3   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

HOTEL BACKERS TOLD THEY MAY GET REFUNDS

Investors in a defunct Smith Mountain Lake hotel project heard Monday that they might get their money back because a sale of hotel property still is pending.

The atmosphere was cordial at the second creditors' meeting in the personal bankruptcy of David A. "Red" Dean, principal in the hotel project.

Much of the two-hour gathering was devoted to discussion of the Smith Mountain Lake Resort Hotel that was planned on 158 acres in Bedford County.

First National Bank of Rocky Mount has a first mortgage on the property for $680,000, and Sentry Federal Savings Bank of Norfolk has a second mortgage for $300,000.

A third claim on the property of $2.1 million involves 26 investors who have pinned their hopes on the sale of the property to Grand Virginia Properties Inc. Grand Virginia, a company owned by Linda Morran of Boones Mill, has had the property under contract since December.

Morran also has filed a lawsuit asking that the third lien on the property be disallowed because it was added after her contract was obtained. That suit still is pending, said Roy Creasy, bankruptcy trustee.

- Staff report

by CNB