The 18-hole, Lutz, Fla., golf course property was in foreclosure proceedings when the Chapter 11 bankruptcy petition was filed on February 6. The business estimates it owes about $329,000 to priority unsecured creditors, $2.8 million to secured creditors and $1.8 million to unsecured creditors, but is confident it can successfully reorganize.
The Cheval Golf & Country Club in Lutz, Fla., is seeking Chapter 11 bankruptcy reorganization, the Tampa Bay (Fla.) Business Journal reported.
The 18-hole golf course property was in foreclosure proceedings when the bankruptcy petition was filed February 6, court records show. The property includes the golf course, practice facility, clubhouse, pro shop and tennis courts. Assets and liabilities are estimated at $1 million to $10 million each, the Business Journal reported.
Cheval Golf Club purchased the property in 2008 for $3.8 million, but payments from the golf club to the seller to satisfy the outstanding mortgage were not applied as agreed, according to the case management summary in bankruptcy records. Extensive remodeling of facilities and renovation of the course costing more than $2 million took place from 2009 to 2011, but club membership decreased during the economic downturn, the Business Journal reported.
Due to the membership loss and high interest financing, the club incurred late fees and loss of productivity, documents state. The business estimates it owes about $329,000 to priority unsecured creditors, $2.8 million to secured creditors and $1.8 million to unsecured creditors, the Business Journal reported.
The club’s annual gross revenue was about $1.7 million in 2013, up about $200,000 from the previous year. Golf memberships and revenue are now stabilized, and the club believes it can successfully reorganize by restructuring the golf course loan and other financing agreements, the Business Journal reported.