The following stories are courtesy of The Eagle County Times. Thanks for your thorough research on this issue.
May 22, 2011 by eaglecountytimes
by – Casino Royale
It seems there is more Poker than Golf being played in Cordillera these days.
One of the current players – local Alpine Bank wants out of the game. With their Golf Course backed loan to the Wilhelm Family Trust outstanding for $12.7 Million – Alpine has chosen to go the route of New York based – Mission Capital Advisors to exit their Cordillera Golf investment. Mission Capital has been hired to sell that Note – at auction next month – presumably at a minimum number/bid agreeable to Alpine Bank. That Note by the way is due in its entirety – no later than June 2012.
Here’s what you’re not being told in the Casino.
The (Golf) Club at Cordillera has a massive financial legal obligation to several hundred current members. Back in the day…Cordillera Golf memberships where selling for as much as $115,000.00 Initiation Fee with an annual dues of $9,750.00 The contracted deal at the time was – that 80% of the $115k was refundable when a member left the club and a new member came in – and paid his/her $115k. (Click Here) No doubt Mr. Bernie Madoff would describe this arrangement as perfectly workable – as long as there was someone new, standing in line, anxious to hand over his/her $115k for a new Cordillera Golf membership. Therein lies the Rub…That legal agreement to pay back 80% of the Initiation fee is still on the books – and the ECT folks have been told that obligation is in the range of $50-$100Million!
The big unanswered question. What is the real value, in today’s market for the Cordillera Golf Course complex, when that legal entity has an outstanding debt in the $50-100 Million range? Nobody is standing in line these days, to pay to get in – however there is a growing line of current Cordillera members – that want out – just like Alpine Bank.
The interesting question at the ‘Poker table’… Having pointed out above is – who would reasonably want bid on the $12.7 million dollar Note – soon to be offered at a Mission Capital Auction?
The logical answer: The two effected parties, Wilhelm who owes the current Note to Alpine and the current property owners/golf members of Cordillera. It is reasonable to expect Wilhelm will bid (via a 3rd party?) in order for the chance at lowering his $12.7 Million obligation to Alpine Bank. It is also reasonable to expect the Cordillera homeowners would bid to preserve, protect, maintain and control the quality of their 4 golf courses and associated buildings.
None of the real Cordillera insiders will say one word about that today…a clear indication the games afoot. And a high stakes ‘Poker’ game it is.
A Third Party bid, at Auction? Possibly yes, but only if said 3rd party is prepared to navigate through the Court system; Goal being to have the $50-100 Million long-term obligation expunged via a (bankruptcy/foreclosure?) in the years to come. Now add in the additional costs to that bidder – who would have to pay for annual golf course repair and maintenance – in access – of whatever operational costs – aren’t covered by the annual dues from the shrinking number of Cordillera Golf memberships. A 3rd party bid like this? Possibly, in the ECT’s assessment – but a long shot for sure.
How to Bid at the ‘Poker table’? ECT not sure this is legal or if a bid like this would be accepted by Mission Capital…
Hypothetical: Why not a bid (Cordillera homeowners?) that reads – “our bid is whatever the highest bid is plus $1,000.00 – not to exceed $12.7 Million dollars”?
If Mission and Alpine Bank accepted something like that – Wilhelm would then owe the (Cordillera homeowners?) the (presumably less than $12.7 Million dollars) still due in June 2012. If the Cordillera homeowners weren’t paid back their (now less than $12.7 million Note) by June 2012 – in theory – the Homeowners could then force a Foreclosure and possibly get their Club now owned by Wilhelm.
A big Poker play indeed. We’ll all know more very soon.
by Paul Drake and Della Street
Wednesday, May 25th 2011 – Now that the Wilhelm/Cordillera lawsuit has been filed at the Eagle County Courthouse – it is a matter of Public Record.
Interested parties can read/download a copy of that legal document by (Clicking Here)
The case number is 2011CV456 and the Judge assigned to the case is District Court Judge – Frederick Gannett