Cordillera Golf Club – Playing Poker with their Greens

by – Casino Royale

It seems there is more Poker than Golf being played in Cordillera these days.

One of the current players – local Alpine Bank wants out of the game.  With their Golf Course backed loan to the Wilhelm Family Trust outstanding for $12.7 Million – Alpine has chosen to go the route of New York based – Mission Capital Advisors to exit their Cordillera Golf investment.  Mission Capital has been hired to sell that Note – at auction next month – presumably at a minimum number/bid agreeable to Alpine Bank.  That Note by the way is due in its entirety – no later than June 2012.

Here’s what you’re not being told in the Casino.

The (Golf) Club at Cordillera has a massive financial legal obligation to several hundred current members.  Back in the day…Cordillera Golf memberships where selling for as much as $115,000.00 Initiation Fee with an annual dues of $9,750.00  The contracted deal at the time was – that 80% of the $115k was refundable when a member left the club and a new member came in – and paid his/her $115k.  (Click Here) No doubt Mr. Bernie Madoff would describe this arrangement as perfectly workable – as long as there was someone new, standing in line, anxious to hand over his/her $115k for a new Cordillera Golf membership.    Therein lies the Rub…That legal agreement to pay back 80% of the Initiation fee is still on the books – and the ECT folks have been told that obligation is in the range of $50-$100Million!

The big unanswered question.  What is the real value, in today’s market for the Cordillera Golf Course complex, when that legal entity has an outstanding debt in the $50-100Million range?  Nobody is standing in line these days, to pay to get in – however there is a growing line of current Cordillera members – that want out – just like Alpine Bank.

The interesting question at the ‘Poker table’…  Having pointed out above is – who would reasonably want bid on the $12.7 million dollar Note – soon to be offered at a Mission Capital Auction?

The logical answer:  The two effected parties, Wilhelm who owes the current Note to Alpine and the current property owners/golf members of Cordillera.  It is reasonable to expect Wilhelm will bid (via a 3rd party?) in order for the chance at lowering his $12.7 Million obligation to Alpine Bank.  It is also reasonable to expect the Cordillera homeowners would bid to preserve, protect, maintain and control the quality of their 4 golf courses and associated buildings.

None of the real Cordillera insiders will say one word about that today…a clear indication the games afoot.  And a high stakes ‘Poker’ game it is.

A Third Party bid, at Auction?  Possibly yes, but only if said 3rd party is prepared to navigate through the Court system; Goal being to have the $50-100Million long-term obligation expunged via a (bankruptcy/foreclosure?) in the years to come.  Now add in the additional costs to that bidder – who would have to pay for annual golf course repair and maintenance – in access – of whatever operational costs – aren’t covered by the annual dues from the shrinking number of Cordillera Golf memberships.  A 3rd party bid like this?  Possibly, in the ECT’s assessment – but a long shot for sure.

How to Bid at the ‘Poker table’?  ECT not sure this is legal or if a bid like this would be accepted by Mission Capital…

Hypothetical:  Why not a bid (Cordillera homeowners?) that reads – “our bid is whatever the highest bid is plus $1,000.00 – not to exceed $12.7 Million dollars”?

If Mission and Alpine Bank accepted something like that – Wilhelm would then owe the (Cordillera homeowners?) the (presumably less than $12.7 Million dollars) still due in June 2012.  If the Cordillera homeowners weren’t paid back their (now less than $12.7 million Note) by June 2012 – in theory – the Homeowners could then force a Foreclosure and possibly get their Club now owned by Wilhelm.

A big Poker play indeed.  We’ll all know more very soon.

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4 responses

  1. Nice reporting ECT. Your Cordillera report really exposes the child like stories in what you call the fishwrap and vm.

    None of those people who work there could touch this kind of reporting.

    Keep up the good work.

  2. The obligation to the members is closer to the $100 million dollar number. (they will never see it from these scumbags) Ownership of the note gets you the underlying real estate assets at foreclosure not the club obligations which no one wants. The question is do you put up $12 million for a year just to earn interest on a sketchy loan. Foreclosure is expensive, bankruptcy is a real possibility and you may not get paid your full interest or your full principal back by a bankruptcy judge. You may have to wait years….On the other hand, bid $6 million and you may get $12 million in a year. I wonder if Alpine Bank would take an IOU?

  3. Pingback: District Attorney – No Fraud Charges at this time… «

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