MONTICELLO — The company behind YO1 Longevity & Health Resorts in Monticello has filed for Chapter 11 bankruptcy protection as it faces mounting debt and foreclosure proceedings.

Veria Lifestyle Inc., which owns and operates the wellness resort at 420 Anawana Lake Road, filed its bankruptcy petition on October 2 in U.S. Bankruptcy Court for the District of New Jersey.

Chapter 11 bankruptcy allows businesses to remain operational while developing a plan to restructure their financial obligations under court supervision.

In its filing, Veria pointed to several factors contributing to its financial difficulties, including the resort’s opening in October 2019, just months before the COVID-19 pandemic.

The pandemic forced YO1 to shut down for approximately 18 months. According to the company, its recovery was particularly challenging because many of the resort’s wellness services and ayurvedic treatments require close physical contact.

Veria also reported that it never received the full amount of financing anticipated through a $45 million construction loan agreement.

Canara Bank and Union Bank of India subsequently pursued foreclosure proceedings in Sullivan County Supreme Court. Bankruptcy documents indicate that an August judgment placed the outstanding debt at approximately $73.1 million.

Court records show that a foreclosure auction had been scheduled for October 14 at 10 a.m. at the Sullivan County Courthouse. The Chapter 11 filing raises questions about whether that sale will proceed as planned, since bankruptcy proceedings generally trigger an automatic stay that temporarily halts most foreclosure actions.

The resort property also holds a significant place in Catskills history.

YO1 occupies land once home to Kutsher’s Country Club, a landmark destination during the region’s Borscht Belt heyday. Established in 1907, Kutsher’s evolved from a modest farmhouse into a nationally recognized vacation resort offering entertainment, recreation and family activities.

The resort also earned a reputation for its connections to professional basketball. Wilt Chamberlain, who later became one of the NBA’s greatest players, worked there as a bellhop during his high school years. Legendary Boston Celtics coach Red Auerbach also served as athletic director for Kutsher’s summer basketball program.

Following Kutsher’s closure in 2013, the property was acquired by Veria Lifestyle, which transformed a portion of the former resort grounds into YO1 Longevity & Health Resorts.

As part of its bankruptcy case, Veria is seeking court authorization for up to $1.75 million in additional financing to support ongoing operations while it works through the restructuring process.

Radio Catskill contacted YO1 seeking comment on the bankruptcy filing but had not received a response at the time of publication.