Helena’s historic Montana Club to pursue Chapter 11 bankruptcy but to remain open

Shareholders of the Original Montana Club Cooperative Association voted late Tuesday to authorize its board to file for Chapter 11 bankruptcy in an effort to allow them to reorganize, negotiate with creditors and preserve the historic but financially strapped club in Helena’s downtown.

Members were told the filing allows the club to remain open.

It also will stay the ongoing lawsuit and allow payments over time, prevent a court-ordered liquidation, keep employees and allow for a thoughtful sale of assets as necessary.

The voice vote was unanimous among the nearly 40 people in the room, who also carried about 30 proxies from among 477 shareholders.

Board President Charles Robison said the Montana Club Cooperative had been sued by the Montana City Club Building Condominium Owners Association, who are the other owners of the Montana Club building at 24 W. 6th Ave., for nearly $500,000 in unpaid assessments and interest, which comes to about $700,000.

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Board president Charles Robison speaks Tuesday to Original Montana Club Cooperative Association shareholders. 

Phil Drake, Independent Record

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