Latest News 2012 July Denver Golf Club Seeks Bankruptcy Protection

Denver Golf Club Seeks Bankruptcy Protection

The Vail Valley golf club and resort officially filed for a Chapter 11 bankruptcy protection, according to the Denver Business Journal. Also called the Cordillera Gold Club LLC, this Edwards residential golf complex made the filing on Tuesday so that it can best organize its finances. This is an attempt to reduce surmounting debt. The club Chairman told the Denver Business Journal that the club certainly hoped to avoid declaring bankruptcy, but was not able to succeed in doing so. They were compelled to accept a Chapter 11 because they couldn’t agree on a contract with the stakeholders in the community. Thankfully, be filing the club will be able to carry on with its daily business and organize into a healthier company than before.

The filing comes during an abundance of lawsuits from members of the club, property owners, and the chairman. Normally, the issue at hand is a decision to close some of the club’s golf courses last year. Angry members are pulling all the stops to show that they don’t approve of the choice. The club opens four golf courses in Colorado, but only has one open at present. Members believe that this it was an unfair choice that cheated them out of the benefits that they expected when becoming a member of the club.

The partnership collected $8 million in membership dues in 2011, and gave themselves almost $1 million as profit. Instead of choosing to open the golf courses, they paid themselves and members claim that this is a violation of the agreement. However, the club owes $12.7 million to the Alpine Bank in debt. The club filed for bankruptcy for this reason, and lists asset and liabilities ranging from $10 million all the way up to $50 million. The club’s largest creditor is listed as the Rush Family Trust of San Diego, to which they owe $2.5 million.