MONTICELLO — The company that owns and operates YO1 Longevity & Health Resorts in Monticello has filed for Chapter 11 bankruptcy protection.

Veria Lifestyle Inc. filed for Chapter 11 on October 2 in U.S. Bankruptcy Court for the District of New Jersey. The company operates YO1 at 420 Anawana Lake Road.

Chapter 11 allows a company to continue operating while it works through the court to reorganize its debts.

According to the filing, Veria said its financial problems were tied in part to the timing of YO1’s commercial launch in October 2019. The COVID-19 pandemic followed months later, forcing the resort to close for about 18 months. Veria said business was slow to recover, particularly because many of its wellness and ayurvedic treatments involve physical contact.

The company also said it did not receive all of the financing expected under a $45 million building loan agreement. Canara Bank and Union Bank of India later filed a foreclosure action in Sullivan County Supreme Court. According to the bankruptcy filing, a judgment entered in August put the amount owed at about $73.1 million.

According to court documents, the property will go to foreclosure auction on October 14 at 10 a.m. at the Sullivan County Courthouse. However, it’s unclear if the bankruptcy filing could halt or stop the auction from happening.

The property has a much longer history in Sullivan County.

YO1 sits on land that includes the former Kutsher’s Country Club, one of the best-known resorts from the Catskills’ Borscht Belt era. Kutsher’s began in 1907 and grew from a farmhouse into a major resort known for entertainment, sports and family vacations.

Its sports history became especially well known. Future NBA legend Wilt Chamberlain worked at Kutsher’s as a bellhop while still in high school, and Boston Celtics coach Red Auerbach served as athletic director of the resort’s summer basketball program.

Kutsher’s closed in 2013 and the property was sold to Veria Lifestyle, which later redeveloped part of the site into the wellness resort that became YO1.

Veria is now asking the bankruptcy court to approve up to $1.75 million in additional financing to continue operating during the case.

The Democrat reached out to YO1 for additional comment but did not hear back by presstime.