Ford's Colony Country Club Bankruptcy Talks Go Bust

Wednesday, November 17, 2010

With a court deadline set for Wednesday, it looks as though mediation discussions between Ford’s Colony Country Club, which filed for Chapter 11 bankruptcy protection in March, and lender Prudential have reached an impasse.

 

Country Club General Manager Steve Dreybus sent an update to members at the end of September saying that the parties had a tentative “agreement on many core issues” and they would report results to the judge on November 17. On Monday, Dreybus sent an update with the news that Prudential is still pressing to end the club’s Chapter 11 filing, which would mean Prudential could foreclose on the property and take over operations.

“The bottom line is that either the Club will successfully reorganize or Prudential will take over,” he wrote, bluntly.

“We believe that we have a plan for a viable reorganization that is in the best long term interest of our members, the Club's creditors, and the Ford's Colony community at large,” Dreybus wrote.

“Our Plan provides for continuity of member rights and privileges, compensation to creditors, and a business model based on continued usage of all golf courses (54 holes) and dining venues. There is a record of 25 years from which to judge.

“If Prudential wins, there are no guarantees.”

The Club has set up a Creditor’s Committee, which is a forum for members who are due advances. The committee consists of an attorney paid for through Club operating funds, two active members and two resigned members. The organization is soliciting comments from members, though the comments will have no role in the court hearings, Dreybus said.

The Club is also arguing to classify the claims into different categories. Dreybus said in his letter, “As stated previously, we believe that all member claims are not equal. For example, some have resigned from the Club and are owed money right now. Many others are still active.

“We have important distinctions in member categories with our Platinum and Premier memberships.” Their plan to classify claims will allow for “a more specific and targeted repayment plan to be offered.”

Other items to be discussed Wednesday include the Club’s motion for exclusivity, which would ensure the restructuring plan was created solely by the Club, and a continuance motion for substantive consolidation, which adds the unsecured claims of members with all the other creditors.