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Interim Loan Approved for Bankrupt The Dominion Club

| February 24, 2011

An entity tied to the golf and country club’s founder and owners has agreed to lend it $1.5 million while the club works through Chapter 11 bankruptcy protection.

The battle for the future of The Dominion Club in Western Henrico, Va., is moving from the courtroom to the negotiation table, reports the Richmond BizSense.

An entity tied to the golf and country club’s founder and owners has agreed to lend it $1.5 million while the club works through Chapter 11 bankruptcy protection.

The Dominion Club, a private country club with more than 700 members, filed for Chapter 11 bankruptcy after it was unable to refund millions of dollars in initiation deposits owed to current and former members.

Lawyers from both sides confirmed Tuesday that an order has been submitted to allow the Dominion Club to access up to $1.5 million in debtor-in-possession financing.

The financing will be provided by Loch Levan Limited Partnership. The Dominion Club is currently paying monthly rent of $92,700 for the use of the land under the golf course, which it doesn’t own, to Loch Levan, according to court documents.

“The debtor will have funds to make sure it can operate,” said Vernon Inge, an attorney with LeClair Ryan representing the debtor club.

With that financing in place, the two sides will begin the process of negotiating how best to manage the club down the road.

The majority of the creditors in the bankruptcy filing are current and former Dominion Club members, and one of the potential outcomes, both sides have stated, is for the members to take ownership of the club.

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