BY SUSAN WARE

For Cheryl Merino, the co-owner of Stonebridge Country Club, the most frustrating thing about filing Chapter 11 is that most people don’t understand what it means.

“Chapter 11 is to give viable businesses a chance to reorganize debt and pay people back. It doesn’t mean we are closing, or that there will be new owners,” said Merino.

Merino, who owns the 10-year-old golf course with her husband Ron, filed for Chapter 11 on May 14, just days before a scheduled foreclosure auction of the 164-acre, 18-hole course and clubhouse.

According to court documents, Stonebridge has a $3.7 million mortgage with the Community Bank and Trust Company in Plaistow and an $80,000 mortgage with Auburn Loan Serving in Maine. There is also a debt of approximately $337,000 to roughly 200 unsecured creditors, such as utilities. The business is worth roughly $5.5 million.

“This is just a bump in the road and we are working through it with a plan,” said Merino.

Trouble began for Stonebridge over the past 18 months. Three 100-year storms left the course wet in places that had never had water before, and did extensive damage to fairways and cart paths. Merino estimates that the labor and repair costs from the storms cost more than $100,000.

“Storms like this are not something you can plan for. It is hard to recover from one, never mind three,” she said.

Last spring was particularity difficult. The Mother’s Day storm wreaked havoc on the course, then the next six weekends saw heavy rain, she said.

Despite the unpredictable weather and her new role explaining Stonebridge’s financial situation on a daily basis since the Chapter 11 became public, Merino is confident that Stonebridge will weather all of these obstacles.

“It is a little frustrating that some people are making such a big deal out of this. Lots of businesses file Chapter 11 and come out the other side just fine. We will, too,” said Merino.

Events at Stonebridge are a specialty, and in June the country club has an event scheduled every day but three, said Merino. Additionally, the new golf pro, Matt Madore, has brought 30 new members – at $2,200 a year for membership – to the club and is driving business with lessons.

Meanwhile, the Merinos are in the midst of reorganizing the country club’s debt. They must submit a plan to court in September that details how they will manage the debt.

“The future is looking good. We have loyal customers and the bottom line is that people really like Stonebridge. I know we will get through this,” said Merino.