TimberCreek Golf Club in Daphne struggles with debts as it navigates bankruptcy – FOX10 News

DAPHNE, Ala. (WALA) - Looking for ways out of financial problems related to a stagnant golf

MOBILE, Ala. (WALA) The once-prosperous TimberCreek Golf Club continues to struggle financially as it navigates a Chapter 11 bankruptcy filing.

The owner of the course, nestled in the upscale TimberCreek subdivision in Daphne, filed for bankruptcy protection in August.

In a Bankruptcy Court filing earlier this month, the clubs owner Bradley Investments listed almost $1.75 million in assets against debts exceeding $3.3 million.

Those debts include more than $2.5 million owed to so-called secured creditors, who have higher priority, and lower-priority unsecured claims of more than $800,000.

A status conference is scheduled for next week in the case. Ronald Clifford, a lawyer representing a committee of unsecured creditors, also could not immediately be reached for comment.

Owner Rob Bradley told FOX10 News that he does not know how long it might take to go through the bankruptcy process.

It is a situation that is very fluid. But were very optimistic that were going to get through this, he said.

Bradley said the course as struggled amid a national decline in golfing interest.

TimberCreek is not unique, he said. Thousands of courses are going through this across the country.

TimberCreek Golf Club in Daphne.

According to the National Golf Foundation, almost 200 golf courses across the country closed last year, cutting the golf course supply by 1.2 percent from the previous year. That continued a trend that dates back several years. Since 2006, according to the organizations Golf Industry Report, closures have outpaced new courses.

The report attributed the trend partly to an unsustainable 20-year building boom that saw the construction of 4,000 courses in the years running up to the bust.

Even before TimberCreek filed for bankruptcy, there have been signs of financial problems. Last year, the golf club asked the neighborhood property owners association to support a $600 annual fee to help support the golf course.

That sparked blowback from homeowners opposed to bailing out a private business.

Bradley told FOX10 News in January that an annual assessment would help the golf course and, as a result, boost property values.

The route were choosing right now is simply a volunteer basis. Maybe down the road well talk about something more formal or more structured, he said at the time.

Bradley on Wednesday said he remains hopeful that a deal can be worked out with the homeowners association. He said that is the route that successful golf courses have taken. He added that the association has sent a survey to homeowners to gauge support.

Ultimately, Bradley said, it is about the neighborhood protecting an asset that adds to the value of the properties. Without the course, he said, You lose that premium.

Among the companys debts are unpaid taxes. The initial filing listed $67,097 owed to the Alabama Department of Revenue, $25,426 owed to Baldwin County in sales taxes and $31,266 owed to the city of Daphne.

The largest individual creditor is a Maryland partnership known as McCormick 109 LLC, to which TimberCreek owes more than $500,000 after deducting $1.5 million in collateral. The mortgage company specializes in acquiring and managing loans and distressed debt, according to its articles of incorporation.

The second-biggest creditor is another mortgage company, First Home Bank Laon Operations in St. Petersburg, Florida. The listed debt is $287,057.

The bankruptcy filing also lists Bradley as a creditor to the tune of $122,966. He said that is a reflection of the fact that he has much of his own money at stake trying to save the golf course.

In the end, the future of TimberCreek might come down to the willingness of the neighborhoods residents to subsidize it. Asked if that was a necessary component of any successful bankruptcy reorganization, Bradley said, Thats a good question.

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TimberCreek Golf Club in Daphne struggles with debts as it navigates bankruptcy - FOX10 News