Posts Tagged Cordillera
- Mark Harden New Media Editor- Denver Business Journal
Cordillera Golf Club LLC, an Eagle County golf and residential complex that filed for Chapter 11 bankruptcy protection in June, said late Wednesday that it had “completed successful mediation” in a legal battle with property owners and creditors.
Cordillera — which operates as the Club at Cordillera in Edwards, near Beaver Creek — also said that it has agreed to be sold by the end of the year. The settlement is subject to court approval, it said.
In a statement, Cordillera said it “has completed successful mediation with all major parties [in the dispute] including the Cordillera Property Owners Association (CPOA), the Cordillera Transition Committee (CTC) and the Official Creditors Committee (OCC).”
The mediation, it said, “has provided a framework for resolution of suits among membership and ownership over financial matters, dues structures, ownership rights and the future of the club facilities of Cordillera.”
Those facilities include three golf courses and a teaching course as well as an athletic club and three clubhouses with restaurants.
Cordillera has some 1,100 homeowners, several hundred of whom had joined in a class-action lawsuit against the club.
The dispute did not involve the adjacent Lodge and Spa at Cordillera, which is separately owned.
“I am happy that we were able to come to a resolution of disputes that have affected our homeowners, club members, the community and my family for more than two years,” club owner David Wilhelm said in the statement. “It’s time to move on in the most positive way.”
Under the settlement agreement, “the parties agreed that the club will be sold prior to year end 2012,” Cordillera’s statement said.
“It is expected that all cash bids for the operating assets for the club will be received by Dec. 3,” the statement added. “In the event of multiple bids, an auction will be held on Dec. 10 to select the highest and best bid. In the auction process, Cordillera will likely be sold as a single asset. The sale will close before Dec. 28.”
Cordillera in June filed for Chapter 11 protection after failing to reach “a mutually acceptable agreement with certain stakeholders in the community.”
The filing came in the wake of dueling lawsuits involving property owners and Wilhelm, with one issue being a decision not to open some of the club’s golf courses last year, according to Vail Daily coverage of the issue.
The Chapter 11 filing (download here) listed both assets and liabilities ranging from $10 million to $50 million.
By John Mossman
The Denver Post
The Cordillera Golf Club bankruptcy case, shifted from Delaware to Colorado last week, is complicated by litigation between owner David Wilhelm and 610 club members that has gone on for more than a year.
Wilhelm and his management company filed for Chapter 11 bankruptcy protection June 26 in U.S. Bankruptcy Court in Delaware, where the company is incorporated. The filing came on the same day a $12.7 million loan was due to Alpine Bank of Colorado.
“The (Chapter 11) process will allow the club to operate its ongoing business while it resolves the outstanding conflicts and prepares a plan of reorganization to emerge a healthier company,” Wilhelm said.
The bankruptcy and litigation involve only the Club at Cordillera, not the Lodge and Spa at Cordillera, which is a separate entity and remains open for business.
For the second year in a row, Cordillera’s Valley golf course is the only one of the four Cordillera courses open.
One of the largest exclusive golf communities in North America, Cordillera covers 12 square miles in the heart of Colorado’s Vail Valley near Edwards. It consists of three 18-hole courses — designed by Jack Nicklaus, Hale Irwin and Tom Fazio — and a short course designed by Dave Pelz.
Last spring, Wilhelm promised to open all four golf courses but opened only Fazio’s Valley course and laid off dozens of workers.
Current and former club members sued him in a class-action lawsuit, saying that if he was going to open only 25 percent of the courses, they wanted 75 percent of their dues back.
Members say the Wilhelm Family Partnership collected $8 million in membership dues last year and paid itself almost $1 million while failing to open three Cordillera golf courses, thus violating the membership agreement.
The lawsuit asks that the 2011 dues be repaid and that all of the membership deposits be refunded. Such a payout could total $108 million.
Wilhelm then sued the members for $96 million, claiming they were trying to drive him out so they could take over.
Last week, the case was transferred to Judge A. Bruce Campbell in Denver’s federal bankruptcy court.
Chris Celentino, a bankruptcy attorney representing Cordillera, said Alpine Bank has agreed to extend credit financing through the summer season, allowing “more time to work out a long-term solution that will enable the club to restore itself.”
In a related matter, District Court Judge Frederick Gannett of Eagle postponed a contempt-of-court hearing against Wilhelm based on his failure to provide requested information.
Gannett told the Vail Daily on Wednesday that if Wilhelm’s attorneys want him to recuse himself from the case because of alleged bias, he would do so but only if appropriate legal documents are filed. Gannett is a member of another golf club also in bankrupcty.
John Mossman: 303-954-1479, firstname.lastname@example.org
Here is the latest update on all the legal happenings in Cordillera courtesy of the Eagle County Times. This ongoing soap opera seemed to be heading in the right direction when David Wilhelm resigned as managing partner. Here is the latest:
by Clayton Moore
What’s going on with the (now) Class Action Lawsuit involving the Wilhelm Family Partnership and the members of the Cordillera Golf Club?
Well…it was NOT a good day, yesterday, in Federal Court – for the cause of the Wilhelm Family Partnership.
The WFP filed just weeks earlier to move the case to Federal Court (after the lawsuit attained Class Action Status) – that status achieved by a previous ruling from District Court Judge Fred Gannett. The Plaintiff’s in this case (Golf Course Members, et al) filed with District Court – to get Class Action status. (Click Here)
Yesterday the ruling from Federal Court was handed down. The WFP’s attempt to move their Case to Federal Court was rejected by the Ruling of Judge William J. Martinez – a U.S. District Judge. This case is now back in the hands of District Court and Judge Fred Gannett.
So what can reasonably be expected to happen next?
Cordillera insiders have insisted privately that this recent WFP “move” to try and get this lawsuit into Federal Court was no more than an attempt at a delaying tactic in the Courtroom.
Know This: There has absolutely been no attempt by local Alpine Bank to delay the repayment of their ~$13.7 Million dollar loan – that the Wilhelm Family Partnership currently has with Alpine. It has been reported that this (interest only?) loan is due in it’s entirety no later than June 2012. Alpine for their part has shown no fear of (jumping into) this litigation as a 3rd party litigant – to protect their $13.7 Million Dollar loan – that is secured (in part) by the pristine condition of the 4 Cordillera Golf Courses.
ECT’s question: Who is going to pay to maintain those Cordillera courses this Spring, when/if the WFP (declares bankruptcy?) as their next move in this now (multi-year) lawsuit?
The Cordillera Property Owners Association recently received two letters. One from, the former managing partner of the Cordillera Golf Club, and Dr. Jeffrey L. Rush, the new Managing Member of the Cordillera Golf Club. The property owners received the following letter from Lois Deusen, the President of the Cordillera Property Owners Association. Click on the links below to view the letters.
To all Cordillera Property Owners:
The CPOA Board has received two letters regarding the litigation which we want to share with the community. The first is from Dr. Jeffrey L. Rush describing the restructuring of the Club at Cordillera. The second is from David Wilhelm offering to settle the lawsuit against the CPOA and the CTC. The letters are attached and speak for themselves.
As always, we welcome the opportunity to resolve the turmoil in the community and will be taking all appropriate steps to do so. In the meantime, the lawsuit proceeds. We are at the first stages of discovery. Written discovery has been propounded and depositions are being scheduled. We have a trial date of April 2013.
Thank you for your support and continued patience,
Lois M. Van Deusen
Cordillera Property Owners Association
We have had many successes in Cordillera this past year together with the challenges, and we’d like to tell you about a few of them. Many of you have called us to ask questions and we always welcome your inquiries. It’s important to have the facts, so call us any time.
One misconception is that financing institutions will not loan on Cordillera properties. Many, if not all of the sales, this past year have been financed and we will be happy to share the names of those participating institutions with you.
Since January 1, 2011, we have had over $33 million in sales; 22 homes have sold with an average selling price of $1.5 million. There are currently 10 properties under contract, due to close shortly. Just this past weekend, we had several brokers showing property and they placed 3 homes under contract.
We have observed that many of the new buyers in Cordillera are friends of owners and are confident that a resolution to the lawsuit is on the horizon. They feel that now is a good time to buy in Cordillera with the unbeatable values that are available. Interestingly, several of the buyers have been attorneys who have read the information regarding the lawsuits and feel comfortable with their purchases.
The Lodge and Spa has initiated a Cordillera membership for a minimal fee that makes all of the Lodge and Spa amenities available to Lodge members. The Grouse on the Green and Mirador Restaurant are open to the public and as popular as ever. Their list of special events for members is extensive, so call us for more information.
The Cordillera Vail Club at the base of Vail Mountain has initiated a special offering that gives 2 free days use of The Club to folks who may be interested in joining. You do not have to be a Cordillera owner to take advantage of this opportunity. Again, call us for more information.
We have been told that negotiations with The Club are taking place. The Cordillera team is optimistic that there will be a settlement in the near future.
Welcome to my August, 2011 Beaver Creek Real Estate Market Update. Prices continue to drop in Beaver Creek but activity picks up, under contract properties soar across the Valley, and the Cordillera dispute goes to court.
All this and more in this month’s Market Update. Click on the links below to take a look.