Posts Tagged Mission Capital Advisors
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
Bank auctioning $12.7M loan for Club at Cordillera
By Randy Wyrick
CORDILLERA — Alpine Bank is getting out of the Club at Cordillera controversy.
The regional bank has hired a New York City firm, Mission Capital Advisors, to auction its $12.7 million loan with David Wilhelm and the Wilhelm Family Trust, which acquired the Club at Cordillera in 2009.
This will be the sixth loan Mission Capital will have auctioned for Alpine Bank.
Maybe Alpine Bank will get the entire amount, and maybe it won’t, said Mission Capital staffers who asked not to be identified. Those Mission Capital officials said they’ve sold loans for 5 cents on the dollar, 100 cents on the dollar and everything between.
The loan is categorized as “performing” in the offering memo. That means the Wilhelms are making the payments.
But that may not last. Several Cordillera property owners and club members have said they’re leaving the club, and several others already have. Annual dues are $13,800.
“It was a fairly complex deliberation that led us to this conclusion,” said Glen Davis, of Alpine Bank.
The Wilhelms have paid down the loan by $1 million to $12.7 million. They got the loan on June 26, 2009, and it’s due June 26, 2012.
Bidding opens Tuesday. The whole deal closes June 17, according to the offering memo.
When the loan is sold, the Wilhelms will still own Cordillera, but they’ll be in debt to someone new.
Owners not tipping their hand
Cordillera property owners remain optimistic but declined to say whether they’ll be bidding, said Bob Vanourek, of the Cordillera Transition Corp.
“We are very optimistic about the future of Cordillera regardless of who owns the note,” Vanourek said. “It’s an extraordinary place. We’re going through some difficult times right now, but that doesn’t change what’s wonderful about it. We’re doing our best to find a good solution for all the stakeholders.”
Wilhelm and Club at Cordillera officials did not comment Thursday.
Mission Capital’s appraisal puts Cordillera’s value at $50 million. That includes four golf courses and the club facilities.
“This deal trades like any other bank debt. It just happens to have some spectacularly beautiful collateral,” said a Mission Capital official handling the sale.
Mission has handled more than $26 billion in loan sales since 2002. The firm values and markets loans that either are not performing or are distressed and then puts them up for auction.
Cordillera cash clash continues
The loan sale is the latest chapter in the saga between Club at Cordillera owner David Wilhelm and some of the club members.
Last year, Wilhelm said in a letter to members that the club was running millions in the red and that he’d do whatever was necessary to protect the Cordillera brand and make his business profitable. His cost-cutting options included closing one or two of Cordillera’s four courses and allowing public play.
The $12.7 million loan from Alpine Bank is a small piece of Cordillera’s debt load.
When Wilhelm took on the club, he also took on more than $100 million in obligations to some of Cordillera’s original members and investors, according to the Cordillera Transition Corp., a group of Cordillera property owners.
The Cordillera Transition Corp.’s accounting review says the Club at Cordillera lost approximately $10.7 million between June 2009 and October 2010.
“We completely underestimated the magnitude and negative effects of the economic recession,” Wilhelm said in a letter to Club at Cordillera members. n, the memo says, bringing it from $13.7.