Ginn-LA Bankruptcy Part of Larger Restructuring Agreement with Lenders

Tesoro and Quail West will be operated by a court appointed trustee until sold. Laurelmor is being sold. The Ginn sur Mer project will move forward as a joint venture.

Palm Coast, Florida – December 29, 2008 – Various entities of the Ginn Company have reached an agreement resolving the June ’08 default of a $675 million credit facility with Credit Suisse. As a result, five Ginn-LA related entities associated with two Florida communities (Tesoro in Port St. Lucie and Quail West near Naples) have filed Chapter 7 Bankruptcy documents. Two other Ginn projects under lien by the defaulted loans are Laurelmor near Boone NC and Ginn sur Mer on Grand Bahama Island.
June, 30, 2008 Ginn-LA Borrower, LLC and Ginn-LA Conduit Lender, Inc. defaulted on the $675 million credit facility. Negotiations between borrower and lender continued after a 30-day forbearance period expired at the end of August. These talks resulted in the execution of a restructuring agreement that forms the basis for resolving the outstanding issues.
As a result of the agreement:
  • Under a Chapter 7 Bankruptcy filing, Tesoro properties including 353 building lots, the racquet club building, two golf courses, 11.26 acres of commercially zones property, and a 115,000 square foot clubhouse will be operated by a court appointed trustee until a buyer is found.
  • Under a Chapter 7 Bankruptcy filing, Quail West properties including 262 building lots will be operated by the same trustee until the lots are sold. The golf course and clubhouse, while integral parts of the community, are owned by the Quail West Foundation and are not subject to the lender’s liens.
  • Laurelmor will be transferred to a new owner (rumored to be Linger Longer). Lender liens with respect to the project will be released.
  • The parties agreed to a joint venture arrangement with respect to certain portions of the Ginn sur Mer resort in The Bahamas.
All other Ginn communities and developments, including Reunion and Hammock Beach, will continue to operate.
When Robert Gidel was named president of the Ginn Company about 18 months ago, speculated that he was placed into that position by Bobby Ginn’s financial partner, Philadelphia-based real estate investment firm Lubert-Adler (the LA in Ginn-LA). This connection was never acknowledged by the Ginn Company, however Gidel is clearly calling all the shots now. His signature, not Bobby’s, was on the bankruptcy filings.
7 replies
  1. Gene
    Gene says:

    Ginn Bankruptcy

    Maybe Hampton Golf Clubs will be interested in buying. They should have a huge monetaty surplus now that they have found new ways to separate members from their money.

  2. George Meegan
    George Meegan says:

    Absolute Auction should be soon

    The court will move for a date to liquidate the assets as soon as the debts are listed. That should be soon, perhaps a few months, as 7 filing is with no intent to continue to operate beyond resolution. Only other posibility is a buyer of the package, but that’s a long shot, in todays economy.

  3. Rich
    Rich says:

    Hampton Golf

    Not one of Hampton golf course closed and they sure know how to run a business and it is about time that people realize that with a great golf course and great club your real estate is worth more instead of complaining they should try being a little positive

  4. George Edward Chuddy
    George Edward Chuddy says:

    None Closed; one Dead, one Amputated

    Mantanzas Golf Course, the ‘Beautiful Monster’ one of the ‘Four Sisters’ – a PGA Qualifying Site . The Palm Coast Golf Club, ( a.k.a. Palm harbor ) the first full Golf Course in the County designed by Architect Extrodinare Bill Amick ( no drainage issues ); later LPGA Hall of Fame Nancy Lopez; ( certainly no drainage issues – why would she practice for years in muck?). now , amputated, the Driving Range, sold, the parking lot, Sold, the part of Cooper Lane with its’ perpetual easements, sold, the adjoining front Clubhouse entrance road, sold, the Contemporary Clubhouse we were promised, Sold, the adjacent Putting Green, Sold, the adjacent ‘Boat to Golf’ Dock we were shown and promised, sold, the Pump House, sold, even the adjacent first Neighborhood Park in Palm Coast, derelict since 1999, the Lot at the Entrance to the advertised Golf Course Area, where a large Cement Identifying Sign was, Sold too.
    What is also very sad is that Bill Amick told us he and a Local Golf Architect wanted to be considered for the rehab/update, but, the 1/2 Million + or – contract went to Deland and Jacksonville; such a shame since the un-employment rate in Flagler County is so high. Personally, we would have liked to see Bill Amick, the first designer rehab/update Palm Harbor G.Course, it would have completed the circle, plus, be helpful to struggling families in Flagler County, but, no one ever asked any of us our opinions even tho’ we paid plenty and have ‘special interest’ dear to our hearts in the Golf Course.
    Happy New Year Toby.
    Happy New Year dear friends in Matanzas – hang in there..
    Happy New Year Everyone.
    Happy New Year Palm Coast; Happy 40th Birthday Palm Coast!
    George Edward Chuddy

  5. Frank L
    Frank L says:

    Sales Center Closed

    I was wondering why you have not mentioned the closing of the sales office and discovery center at Reunion. Also do you have any knowledge of who is taking over hospitality and If there has been approval of fractional ownership with villas.
    If this occurs the property values sink more!
    Is it true that you can purchase a golf membership without being an owner?

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