A group of foreign investors, which repeatedly claimed to have the largest stake in Wohali’s future development, was the lone bidder interested in the property at a formal auction.
EB5AN submitted a $65 million credit bid to the trustee overseeing Wohali’s bankruptcy proceedings last month. The investment group has been involved in the Wohali project for years and loaned the company more than $79 million to assist with its development. Wohali has since defaulted on the loan, with court documents in a separate case indicating the business owes EB5AN approximately $86 million, including interest and other fees.
Because of Wohali’s outstanding debt to EB5AN, the investment group was expected to be the front-runner when bids for Wohali were due at the end of April. However, EB5AN was ultimately the only bidder interested in the property despite months of conflict between the group and other stakeholders, including Coalville and the previous property owners.
EB5AN used the money Wohali owes as an opening bid for the property, which is why its proposal is referred to specifically as a “credit bid.” The investors also agreed to pay administrative expenses and other fees as part of a settlement.
But the group’s status as the lone bidder doesn’t mean the closing date will go by without a hitch.
Other parties, including a conglomerate of “concerned” Wohali homeowners, the City of Coalville and a group that claims it owns approximately 3,000 acres of Wohali’s backcountry, have all filed written objections challenging the sale to EB5AN.
Peggy Hunt, a federal bankruptcy judge, plans to hear those objections in a series of hearings in May and June before issuing a ruling.
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 Land Estates then filed for Chapter 11 bankruptcy in August, with a reported debt between $100 million and $500 million.