A luxury real estate development and golf course near Coalville could be sold as early as April, less than a year after the company declared bankruptcy in federal court.
Wohali Land Estates filed for Chapter 11 bankruptcy last summer, with a reported debt between $100 million and $500 million. The business has since sought relief through a loan to restructure the organization, which spurred a competition between multiple investors who hoped to become the primary lender.
The lender is a key figure in the bankruptcy proceedings, as the company offering the loan is expected to be first in line to purchase the property once it’s put up for sale or auction.
Chief Judge Peggy Hunt in January awarded the loan to EB5AN, a group of foreign investors who have repeatedly claimed they have the largest stake in the development. Specifically, Hunt gave EB5AN permission to loan $6.8 million to Wohali to aid in its restructuring efforts.
However, Hunt also set a series of important deadlines in the case, including when the property might be sold. The bidding procedure must be outlined and approved by March 3, with an April 10 deadline for the property’s sale or auction.
April 14 was listed as the closing date.
Hunt said there have been 14 parties who have expressed an interest in purchasing Wohali so far, and she estimated the property’s value to be between $50 million and $150 million.
She said the deadlines were determined by EB5AN’s desire to take control of the golf course before the golf season starts, saying a “shorter timeline is more valuable for EB5’s partners.”
Lawsuits naming Wohali as a defendant started piling up last summer after multiple contractors sued the company for reportedly failing to pay its invoices. Wohali declared bankruptcy in August and listed a debt totaling almost $13 million for its top 20 creditors alone.