Aspen Lakes Golf Course is a breathtakingly scenic, public golf course located in Central Oregon. With a spectacular 28,000 square foot clubhouse, the “Brand 33” restaurant, and event space the golf course is the “total package”. However, the company has had a difficult time with staying current on debt obligations which caught up with company leaders in late June resulting in the decision to file for bankruptcy. Aspen Lakes Golf Course, LLC, along with two of its subsidiaries filed a voluntary petition for chapter 11 bankruptcy with the US Bankruptcy Courts for the District of Oregon on June 27th, 2018.
Aspen Lakes Bankruptcy
During its US Bankruptcy Court hearing, the company cited wildfires and the major solar eclipse as issues that caused a downturn in operating revenue. The family-owned golf course CEO also cited a change in tourism marketing as a major cause for losing business opportunities. In Aspen Lakes’ voluntary petition for non-individuals filing for bankruptcy, the company reported owing1-49 creditors $1,000,001 to $10,000,000 million, with roughly the same amount in assets. Management also stated that Wildhorse Meadows, LLC will be filing bankruptcy as well, with its petition being filed the same day.
Second Time Around
Despite having recent financial troubles, the owners of Aspen Lakes Golf Course aren’t strangers to the Chapter 11 bankruptcy process. A subsidiary of Aspen Lakes, Wildhorse Meadows, LLC, which owns the land where Aspen Lakes is located (and also owned by family members), filed for Chapter 11 reorganization in 2011. This Chapter 11 case was filed in an effort to restructure over $4.5 million in debt, much of which was spent constructing the Aspen Lake’s clubhouse in 2008. This time around, the company owes at least $100,000 variety of unsecured creditors arising from trade debt, money that looks to have been keeping the struggling golf course above water and in business over the last several months.
Future of Aspen Lakes Golf Course
Because of the filing, Aspen Lakes Golf Course will spend its 21st anniversary this year, working to renegotiate debt with creditors and to restructure its debt in a manner that allows it regain stability. Notwithstanding, Aspen Lakes has seen its fair share of adversity in the past with the property being saved from foreclosure sale back in 1996. The par-72 golf course is estimated to employ around 100 workers during the busiest seasons totaling nearly $850,000 in payroll expenses alone.