The Harahan, La., property closed in January and filed for bankruptcy in February, after its debt ballooned to $7.8 million.
A federal bankruptcy judge has approved the sale of Colonial Golf & Country Club in Harahan, La. to businessman John Georges and real estate developer Wayne Ducote, the New Orleans Times-Picayune reported.
The 88-acre, 87-year-old property closed in January and declared bankruptcy in February, just one day before the property was to be sold at a state court-ordered auction. The club struggled for a decade, borrowing $4.7 million in 2007 from Colonial Finance LLC and growing its debt to $7.8 million, the Times-Picayune reported.
Georges and Ducote will buy the land for $8.5 million, with Colonial Finance receiving $4.5 million in cash up front, and the two buyers will assume $3.3 million in debt. The club’s other creditors will receive $656,472, the Times-Picayune reported.
Representatives of Colonial said an auction would be counterproductive and the deal offered by Georges and Ducote could not be matched.
“This is the highest and best offer the debtors have received,” Colonial attorney Tristan Manthey said. “We believe this is the best price available for this property.”
Georges did not publicly outline his intentions with the property and said in April that he has no immediate plans. Mayor Vinny Mosca said no applications have been filed with the city regarding the property, the Times-Picayune reported.
“The rumor mill is that they want to put a home or two homes on the back 10 acres of the property,” Mosca said. “It’s up for conjecture. I’ve heard almost everything.”