A businessman and real estate developer paid the Harahan, La., club’s debt of $8.5 million. The pair also paid to maintain the club’s green space after it closed in February 2012, just a day before it was to be auctioned at a Sheriff’s sale.
A businessman and real estate developer completed the purchase of Colonial Golf & Country Club under its Chapter 11 reorganization plan, the New Orleans Times-Picayune reported.
“All the creditors have been paid,” said John Georges, the businessman who paid off the club’s sizeable debt, along with Wayne Ducote, through J.W. Colonial Group LLC. “It’s now private property.”
The pair paid $8.5 million to the club’s creditors, which doesn’t come as a surprise given their agreement to pay to maintain the green space while it was closed, which Club & Resort Business reported in March (“Colonial G&CC Gets Support from New Orleans Businessmen in Bankruptcy Case”).
The Harahan, La., club closed in February of this year during foreclosure proceedings initiated by its primary creditor, Colonial Finance LLC. The company loaned the club $4.7 million in 2007, which ballooned to $7.8 million due to interest, attorney’s fees and other costs. The club declared bankruptcy one day before it was to be auctioned off at a Sheriff’s sale, the Times-Picayune reported.
From the sale, Colonial Finance received $4.5 million in cash ,while Georges and Ducote assumed the remaining $3.3 million debt. Another $656,472 was paid to the club’s other creditors, the Times-Picayune reported.
“Now, all the attention goes to what we’re going to do with the property,” Georges said.
At least four developers have approached the new owners to express interest in the site, Georges added. While he said he and Ducote are in no rush to develop, they are open to hearing ideas for the site and J.W. Colonial will maintain the property until a plan is put together, the Times-Picayune reported.