Firethorne Country Club, Waxhaw, N.C., filed to reorganize under bankruptcy protection earlier this month as the club narrowly avoided a hearing on a lender’s petition to have the club handed over to a receiver, reports the Charlotte Business Journal.
Textron Financial Corp. filed suit against Firethorne in U.S. District Court in Charlotte. That suit contends the club defaulted on a $8 million loan and says the club is insolvent. The club owes more than $5.5 million on the loan, which was taken out in December 2004, Textron says.
Firethorne’s management notified members in a letter of plans to file for Chapter 11. That letter said the filing will not affect club operations.
“We believe this should be resolved within the next 90 to 120 days,” the letter stated.
The Textron suit isn’t the only recent court action related to Firethorne, says the Journal.
On Feb. 25, builder and developer Harry Grimmer won a $1.6 million judgment against Firethorne owner Sunbelt Financial Group and partners Howard Nifong and Keith Bell. The judgment was related to a lawsuit Union County developer Harry Grimmer filed in June claiming Nifong had defaulted on a loan that was secured in part by property in the Firethorne Country Club neighborhood.
Firethorne Country Club also faces a $1.58 million federal tax lien filed in November for failure to pay payroll taxes.
The 400-acre property includes a Tom Jackson-designed golf course and a 28,000-square-foot clubhouse as well as homes initially priced from $650,000 to $2 million. The golf course opened in 1998.
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