Members Weigh in on Ford's Colony Country Club Bankruptcy

Saturday, January 08, 2011

Club members weighed in on the Ford’s Colony bankruptcy reorganization plan this week, saying they want a well-managed, financially viable club that severs financial and management ties to the Ford family.

The CCMA said members want any reorganizational plan to “be a multi-year plan, which is financially viable and reflects a high probability of success,” and is “based on prudent and sound assumptions that are realistic and attainable” and takes into account the existing, highly competitive Williamsburg golf market.

Members also want more financial transparency, and would like to know the Club’s revenues and expenses, and would like to see balance sheets and statements of cash flow as well as a multi-year capital expenditure plan and contingency plans.

Ford's Colony was started more than 20 years ago by Dick Ford, who still remains chairman of Ford's Colony. Country Club members, though, seem disillusioned with Ford family involvement in the Club and feel that any reorganization plan should “reflect the establishment of a new legal entity that is completely separate and de-linked from all existing and future Ford entities … any ongoing business relationship with another Ford entity … needs to be fully disclosed and included with an arm’s length agreement.”

Members would like an oversight committee to be established, which would include Club management and CCMA representatives who would jointly develop and review annual budgets.

They also want to be sure that “no cash or asset transfers will be made … to any Ford family entity or to any owners or officers of any Ford entity for as long as there is any debt … still in existence. In addition, no dividends or similar payments are to be made… for the same period of time.”

The Club should be operated in conformance with best practices laid out by the Club Managers Association of America, according to members, and the Club must maintain benefits currently provided.

Also, for the last two years the Club hasn’t filed tax returns, and the CCMA expects the Club to remedy this and settle past tax liabilities.

Finally, the CCMA points out “the current dues paid by members at Ford’s Colony are the highest for any semi-private club in the area” and “any plan that reflects a continual increase in dues … could lead to a large number of members leaving the Club.”

The CCMA will support any Club owner who is willing to support their requests, according to the statement.

Though members have continued to support the Club through the bankruptcy process, the statement concludes, “we encourage the parties to seriously consider the important factors outlined in this letter as the case proceeds; they are imperative to the success of the Club.”

Read previous updates on the case here and here. On January 18, the court will get a status update on the reorganization plan.