DAPHNE, Ala. (WALA) - Looking for ways out of financial problems related to a stagnant golf <\/p>\n
MOBILE, Ala. (WALA) The once-prosperous TimberCreek Golf Club continues to struggle financially as it navigates a Chapter 11 bankruptcy filing.<\/p>\n
The owner of the course, nestled in the upscale TimberCreek subdivision in Daphne, filed for bankruptcy protection in August.<\/p>\n
In a Bankruptcy Court filing earlier this month, the clubs owner Bradley Investments listed almost $1.75 million in assets against debts exceeding $3.3 million.<\/p>\n
Those debts include more than $2.5 million owed to so-called secured creditors, who have higher priority, and lower-priority unsecured claims of more than $800,000.<\/p>\n
A status conference is scheduled for next week in the case. Ronald Clifford, a lawyer representing a committee of unsecured creditors, also could not immediately be reached for comment.<\/p>\n
Owner Rob Bradley told FOX10 News that he does not know how long it might take to go through the bankruptcy process.<\/p>\n
It is a situation that is very fluid. But were very optimistic that were going to get through this, he said.<\/p>\n
Bradley said the course as struggled amid a national decline in golfing interest.<\/p>\n
TimberCreek is not unique, he said. Thousands of courses are going through this across the country.<\/p>\n
TimberCreek Golf Club in Daphne.<\/p>\n
According to the National Golf Foundation, almost 200 golf courses across the country closed last year, cutting the golf course supply by 1.2 percent from the previous year. That continued a trend that dates back several years. Since 2006, according to the organizations Golf Industry Report, closures have outpaced new courses.<\/p>\n
The report attributed the trend partly to an unsustainable 20-year building boom that saw the construction of 4,000 courses in the years running up to the bust.<\/p>\n
Even before TimberCreek filed for bankruptcy, there have been signs of financial problems. Last year, the golf club asked the neighborhood property owners association to support a $600 annual fee to help support the golf course.<\/p>\n
That sparked blowback from homeowners opposed to bailing out a private business.<\/p>\n
Bradley told FOX10 News in January that an annual assessment would help the golf course and, as a result, boost property values.<\/p>\n
The route were choosing right now is simply a volunteer basis. Maybe down the road well talk about something more formal or more structured, he said at the time.<\/p>\n
Bradley on Wednesday said he remains hopeful that a deal can be worked out with the homeowners association. He said that is the route that successful golf courses have taken. He added that the association has sent a survey to homeowners to gauge support.<\/p>\n
Ultimately, Bradley said, it is about the neighborhood protecting an asset that adds to the value of the properties. Without the course, he said, You lose that premium.<\/p>\n
Among the companys debts are unpaid taxes. The initial filing listed $67,097 owed to the Alabama Department of Revenue, $25,426 owed to Baldwin County in sales taxes and $31,266 owed to the city of Daphne.<\/p>\n
The largest individual creditor is a Maryland partnership known as McCormick 109 LLC, to which TimberCreek owes more than $500,000 after deducting $1.5 million in collateral. The mortgage company specializes in acquiring and managing loans and distressed debt, according to its articles of incorporation.<\/p>\n
The second-biggest creditor is another mortgage company, First Home Bank Laon Operations in St. Petersburg, Florida. The listed debt is $287,057.<\/p>\n
The bankruptcy filing also lists Bradley as a creditor to the tune of $122,966. He said that is a reflection of the fact that he has much of his own money at stake trying to save the golf course.<\/p>\n
In the end, the future of TimberCreek might come down to the willingness of the neighborhoods residents to subsidize it. Asked if that was a necessary component of any successful bankruptcy reorganization, Bradley said, Thats a good question.<\/p>\n
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