Posts Tagged Wilhelm
- 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.
Vail, CO Colorado
Judge Christopher S. Sontchi punted the case to Colorado, where it landed before Judge Bruce Campbell in Denver’s federal bankruptcy court.
“The judge made the determination that this is where Cordillera’s past, present and future members are, so this where the case needs to be,” said Cheryl Foley, one of the lead plaintiffs in the class-action lawsuit against Wilhelm and the Wilhelm Family Partnership.
Campbell held a status conference Friday afternoon to figure out what he has in front of him.
“Everything filed in Delaware has to be moved here,” Foley said.
Wilhelm’s Cordillera Golf Club LLC filed for Chapter 11 bankruptcy protection last month in Delaware, where the company is chartered.
“The Delaware judge’s ruling was meant to create an opportunity for meaningful discussions toward resolution between the club ownership group and its adversaries,” said Chris Celentino, the bankruptcy attorney representing Cordillera Golf Club. “I think the impetus is to encourage the debtor’s adversaries to take a more positive view toward working with the club to reach a productive resolution.”
In a related criminal matter, District Court Judge Frederick W. Gannett postponed Friday’s contempt of court hearing against Wilhelm. The hearing is tentatively set for Aug. 6 to 8.
Celentino and others with Cordillera have said the litigation against Wilhelm stems from a small and vocal minority.
But according to court documents, 623 people are eligible to be part of the group suing Wilhelm; 610 are officially in, and 13 have opted out.
It was 609 until Thursday, when one more person joined the class-action lawsuit.
“That’s not my definition of a small group of people. Characterizing this as a small group of unhappy members is delusional,” Foley said.
The Delaware bankruptcy trustee appointed a committee representing the unsecured creditors. That committee includes six club members, Foley among them, and two people from trade organizations.
“The bank and debtor have agreed to an interim financing agreement to provide more time to work out a long-term solution that will enable the club to restore itself,” Celentino said.
Wilhelm and the Wilhelm Family Partnership filed bankruptcy the day a $12.7 million loan was due to Alpine Bank. The bank has agreed to extend credit through the summer.
The Wilhelms and some Cordillera Club members have been locked in litigation for more than a year.
Last spring, Wilhelm promised to open all four Cordillera golf courses but opened only the Valley course and laid off dozens of workers. Some of the members — now 610, to be exact — sued him in a class-action lawsuit saying opening only the one course violated the membership agreement.
Their lawsuit asks that the $8 million in 2011 dues be repaid and that all the membership deposits be refunded — that could total $108 million.
Wilhelm sued them for $96 million, claiming they were trying to drive him out so they could take over.
Cordillera Update from the Eagle County Times: Alpine Bank – Backs Off in ongoing Cordillera Litigation
December 11, 2011 by eaglecountytimes
by Paul Drake and Della Street
…in a surprise move for some observers…local Alpine Bank ‘rescinded without prejudice’ their legal request for a ‘Limited Receiver at the Eagle County District Courthouse late last week.
As reported last week by the ECT (Click Here) Alpine Bank filed in District Court for a ‘limited receiver’ to be appointed by the Judge…because Alpine’s Note to the Cordillera Golf Club, LLC (read:Wilhelm Family Partnership) was behind in monthly payments due Alpine, according to Court documents.
Late this past week (presumably because Alpine was paid? and Alpine’s loan to the CGC, LLC – is now current?) Alpine backed off their request – from the week before (Click Here) to read the recently filed Court document.
There are still many more ‘unknowns’ in this case than ‘knowns’. Presumably, based on the fact that there isn’t a ‘limited receiver’ appointed by the Court – the Cordillera Golf Club, LLC can legally send their Annual Membership Dues notices to current members and expect to be paid in full during the January 2012 time frame.
It is a well documented fact – that last year at roughly this time – David Wilhelm (owner of the CGC, LLC) made promises (via emails) to existing members – that if they paid their dues on time and in full ALL Cordillera Golf Courses would open at the beginning of the Golf Season (2011) in Cordillera (Click Here from June 12th 2011).
Because of changing financial conditions at the CGC, LLC Mr. Wilhelm did not (as promised) open all the Golf Courses last year – a fact – that is now being litigated against David Wilhelm in a separate legal action – from Alpine Bank’s action.
Insiders at Cordillera believe it’s going to be some time before all these lawsuits are resolved. The ECT folks think so too.