The Oklahoma City, Okla. club, which features a 55,000-sq. ft. clubhouse and 7,240-yard championship golf course on its 275-acre property, is owned by Arkansas businessman Phil Herrington but was foreclosed on in June 2013, with debt relating to the property estimated to be over $9 million. Concert Golf Partners secured first-mortgage position and a group of members is also expected to participate in the bidding.
The proposed auction of the Gaillardia Golf & Country Club in Oklahoma City, Okla. is moving forward after court approval on December 20, reported Arkansas Business.
The 275-acre property, which features a 7,240-yard championship course and 55,000-sq. ft. clubhouse, is owned by Little Rock, Ark. businessman Phil Herrington, but control of the property was taken from Herrington on June 27, 2013 after foreclosure action started, Arkansas Business reported.
That action was precipitated by Herrington failing to pay property taxes, water bills and more, as well as defaulting on two loans totaling more than $8.3 million, Arkansas Business reported. The total outstanding debt related to the property is now estimated at upwards of $9 million, it was noted.
An affiliate of Concert Golf Partners of Newport Beach, Calif., bought the first mortgage position from Little Rock’s Bank of the Ozarks in August 2013, Arkansas Business reported.
Liberty Bank of Oklahoma City holds a second mortgage of more than $1.5 million behind Concert Golf’s $6.8 million claim, it was noted. Liberty’s foreclosure complaint alleged that Herrington spent insurance money collected for storm damage to the clubhouse elsewhere, instead of repairing a leaky roof, Arkansas Business reported.
A group of Gaillardia G&CC members, led by Jeff McDougall, president of JMA Energy Co. of Oklahoma City, also intends to bid for the club (http://clubandresortbusiness.com/2013/11/11/bidders-emerge-gaillardia-gcc/).
“We’ll see who shows up,” Ford Price, Gaillardia’s court-appointed receiver, told Arkansas Business.
Would-be bidders for the club are required to file the qualification paperwork by January 17. Qualification notices will then be sent by January 21, and the auction will be conducted on January 24 in open court before Oklahoma County District Court Judge Patricia Parrish, Arkansas Business reported.
Allied Bank of Mulberry, Ark. holds nearly $2 million of Herrington debt that is partially secured by his stock ownership of Gaillardia, and which now appears to be worthless, Arkansas Business reported.
Tell Us What You Think!
You must be logged in to post a comment.