The owner of the Edwards, Colo., club is now being sued by 610 members, for opening only one of the club’s four courses. The owner could owe $108 million for refunds of 2011 dues and membership deposits.
Cordillera Golf Club’s bankruptcy case has been complicated by litigation between Cordillera owner David Wilhelm and 610 club members. The bankruptcy case has gone on for more than a year and shifted from Delaware to Colorado last week, The Denver Post reported.
Wilhelm and his management company filed for bankruptcy protection June 26 in Delaware, where the company is incorporated. The club is located in Edwards, Colo. The filing came on the same day a $12.7 million loan was due to Alpine Bank of Colorado, the Post reported.
“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.
Last spring, Wilhelm promised to open all four of the club’s golf courses, but only opened one and laid off dozens of workers. Current and former club members filed a class-action suit, contending that if only 25 percent of the courses would be open, they wanted 75 percent of their dues back, the Post reported.
Members further argue that the Wilhelm Family Partnership collected $8 million in membership dues last year and paid itself almost $1 million while not opening three of the club’s courses, in violation of the membership agreement.
Wilhelm could owe $108 million for all 2011 dues to be repaid and membership deposits refunded. Wilhelm then sued the members for $96 million, claiming they were trying to drive him out so they could take over, the Post reported.
Chris Celentino, a bankruptcy attorney representing Cordillera, said Alpine Bank has extended credit financing through the summer season to allow “more time to work out a long-term solution that will enable the club to restore itself.”
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, the Post reported.