A company that has repeatedly claimed to have the largest stake in Wohali’s future development has taken the reins of the luxury real estate property, hoping to repay its foreign investors and find a path forward for a project that has been embroiled in lawsuits and bankruptcy proceedings for the past year.

EB5AN was the lone bidder at a formal auction last month, submitting a $65 million credit bid to the trustee overseeing Wohali’s federal bankruptcy case. The company specializes in the EB5 visa program, a tool established in the 1990s to stimulate the economy through foreign investors.

The EB5 program allows residents of other countries to easily obtain a green card if they invest $800,000 in a project and prove it created at least 10 jobs. It essentially serves as a cheaper method of funding compared to traditional lenders, like banks and private investors.

EB5AN has handled over 30 projects, sourcing potential investors, lending money to developers and administering the visa program. In 2022, the company became the primary source of funding for Wohali, entering a lending relationship with the previous owners before the golf course was completed or major construction work started on the property.

Specifically, foreign investors coordinating with EB5AN contributed almost $80 million to Wohali, leading to the company’s battle in federal court to become the beneficiaries of the property’s sale. EB5AN was ultimately the lone bidder, but only after a lengthy case involving multiple other stakeholders, including Boyden Farms — the original owner of the land — and the Utah Division of Forestry, Fire and State Lands.

EB5AN touted itself as having the experience and business acumen to stabilize the Wohali property while figuring out how to pay back its investors. This is the first time EB5AN has been a primary lender on a seemingly failed project, but the company has previously joined deals in the middle of restructuring in other bankruptcy cases.

Situations in which a project fails and is revived before becoming successful are not uncommon in Summit County, with Promontory serving as the most recognizable example along the Wasatch Back.

EB5AN is still determining what Wohali’s future will look like. The company’s leadership is focused on finishing the remainder of the bankruptcy process, including settling Wohali’s debts with other lenders, and paying back its investors before diving into other construction projects or management of the property.

However, EB5AN has contracted Troon to temporarily handle the golf course, which is expected to open this summer. EB5AN’s development team has also been on site over the past few weeks to determine what amenities and infrastructure on the site still need to be completed.

There is a chance EB5AN will sell the property to another company in the future, but only after remaining issues on the site and the project’s financial problems are resolved, as there are outstanding creditors angling for repayment through the bankruptcy process.

In court filings, EB5AN pointed out poor cash management decisions that leadership attributed to the downfall of the project and its eventual bankruptcy case. Specifically, EB5AN called out previous owners’ efforts to build the golf course before installing necessary infrastructure and creating sellable lots for homeowners.

EB5AN’s attorneys said it would have been a better approach to build the residential homes first and use the proceeds from those purchases to fund the golf course’s development, which could then sell memberships to individuals living on the property. They also decried the previous owners’ philosophy that only people who purchased a home or land on the Wohali property should be allowed to buy a golf membership.

The company doesn’t want to abandon Wohali, though, even if it ends up selling the project to another business down the line. EB5AN leadership said the company is committed to working with Coalville officials to develop and provide the product they originally approved, which will boost the city’s tax base and create additional revenue.

Wohali Land Estates, the management company spearheading the original Wohali project, declared Chapter 11 bankruptcy in August, with a reported debt between $100 million and $500 million. Lawsuits naming Wohali as a defendant had already started piling up before the bankruptcy declaration, with multiple businesses suing Wohali after it reportedly failed to pay its invoices.

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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.

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A luxury real estate development and golf course near Coalville will likely have new owners next month, 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.

Lenders are key figures in the bankruptcy proceedings, as the companies and individuals fronting the loans are expected to be first in line to purchase the property during the bidding process.

Chief Judge Peggy Hunt earlier this month finalized the timeline for the auction, setting a deadline of April 20 for all potential buyers to submit their bids. The auction itself is scheduled for April 24, with a closing date of May 13.

EB5AN, a group of foreign investors who have repeatedly claimed they have the largest stake in the development, will likely be the first to bid on the property. The investment group in a separate lawsuit alleged it had loaned $79.2 million to Wohali and that the development company owed approximately $86 million, including interest and other fees, by the time it declared bankruptcy last summer.

Hunt previously authorized EB5AN to loan at least $6.8 million to Wohali as part of its restructuring efforts during the company’s bankruptcy proceedings. The trustee overseeing the proceedings then proposed an agreement that would allow EB5AN to use the $6.8 million debt as a cash payment during its bid.

The agreement stated EB5AN would start the bidding at $65 million, with $3 million to $4 million set aside to reimburse other creditors. The trustee said he did not expect the property to sell for more than $65 million based on preliminary marketing materials.

The trustee is also offering 150 memberships, each worth $15,000, to Wohali’s golf course this year in an effort to retain the property’s value. The trustee said all 150 memberships need to be sold for the golf course to open. If the 150 memberships are not sold, people who purchased one will be given a refund.

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.

The latest complaint, which was filed last month by Suncore Construction and Materials, claimed Wohali owed the company at least $681,042. Other contractors who have sued Wohali include Knight Trucking, Eave Solar and Sierra Pacific Windows.

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A foreign creditor that previously funded and supported the Wohali development near Coalville is now suing the luxury real estate company and key members of its leadership team for violating a loan agreement and spurring a federal bankruptcy case.

EB5AN is a group of foreign investors who have repeatedly claimed they have the largest stake in the Wohali development as the real estate business faces Chapter 11 bankruptcy in federal court. The group has loaned at least $6.8 million to Wohali to aid in its restructuring efforts and is likely first in line to acquire the property if it is put up for auction later this month, as expected.

But last week, EB5AN filed a lawsuit in Summit County’s Third District Court against Wohali Partners LLC, its leadership team and other conglomerates involved in pitching and constructing the luxury real estate development and golf course.

The complaint said EB5AN entered a loan agreement in 2022 to lend Wohali up to $79.2 million to fund the community’s development. As part of the agreement, each “original member” who joined the Wohali neighborhood pledged to hand over their membership interests to EB5AN as financial security rather than pledging their funding and interests directly to the Wohali landowners and development team.

The membership pledge was designed to permit EB5AN to foreclose on and take control of the property “without resorting to bankruptcy proceedings.”

Court documents claimed Wohali owed EB5AN approximately $86 million, including interest and other fees, by the time the company declared bankruptcy last summer. However, Wohali had already defaulted on its EB5AN loan by Jan. 10, 2025.

The lawsuit said the pledge agreements prohibited each original member from transferring their membership interests without EB5AN’s written consent. Despite that, though, the original members allegedly transferred their interests to another Wohali subsidiary in October 2024 without the investment group’s permission.

“The interest transfer directly and substantially damaged EB5,” the complaint said. “Had EB5 been able to exercise those rights, Wohali Land’s bankruptcy filing would have been unnecessary, and EB5 would have avoided the substantial costs it has incurred in connection with the bankruptcy case, including attorneys’ fees, DIP financing costs and other expenses.”

Court documents stated that if the membership pledges had not been transferred and EB5AN had retained its ability to foreclose on the Wohali property, then the federal bankruptcy case would never have been filed.

The lawsuit additionally said that Wohali Partners held the title to three parcels of property, which were worth $2 million each, that were “critical” to the development because of their road access. However, those parcels were transferred to another company, identified in court filings as “BLD,” which was a conglomerate of investment groups that spearheaded the original project and pursued financing.

Court documents claimed the transfer was made to benefit the members of those investment groups, who “are insiders of Wohali Partners.” It claimed the transfer was made with the “actual intent to hinder, delay or defraud” EB5AN and other creditors and that the deal may indicate signs of fraud.

Specifically, the complaint pointed out that the BLD group was formed on the same day as the transfer, “indicating a pre-arranged deal without disclosure,” at a time when the company was “subject to substantial claims” because of its ongoing financial issues.

The lawsuit additionally claimed that Wohali leadership purchased heavy equipment with $7.9 million from EB5AN’s loans and that the equipment was sold in mid-2025 “while the EB5 loan was outstanding and Wohali Land’s financial difficulties were escalating.”

The proceeds from the sale were not paid back to EB5AN and were instead “paid” to Jonathan Cox, a financial partner who stepped in to help the Wohali project last summer.

The complaint requested Summit County Third District Judge Matthew Bates award compensatory damages to EB5AN for the costs it has incurred as part of the federal bankruptcy proceedings, reimburse EB5AN for the sold equipment and return the BLD parcels to Wohali Partners’ ownership or pay EB5AN for their value.

Wohali’s attorneys have not yet responded to the lawsuit in court, and there are no hearing dates scheduled as of Tuesday afternoon.

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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.

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Two golfers from California are suing the management company of a luxury real estate development and golf course near Coalville after an accident on the property allegedly left the pair trapped under an overturned golf cart.

Wasaga Clack and Robert Duley filed the lawsuit against Wohali Partners last week. They claimed they sustained “catastrophic injuries” on July 18, 2024, when a “defective golf cart with failing brakes violently rolled over on an unreasonably dangerous cart path.” The golf cart reportedly pinned the two visitors underneath the vehicle when it flipped.

The complaint named Wohali Partners as a defendant in addition to five “John Does,” whom the lawsuit said are unidentified individuals responsible for operating, inspecting and servicing golf carts on Wohali’s property.

“While descending from the 16th green toward the 17th tee, (Clack and Duley) traveled downhill on a paved cart path featuring a sustained, steep grade that leads directly into a sharp downhill switchback turn,” court documents said. “As Plaintiffs lightly applied the brakes to control speed on the descent, the golf cart’s braking system suddenly seized and locked, causing the cart to lose traction, fishtail and accelerate uncontrollably downhill.”

The golf cart then rolled onto its side when it entered the switchback turn, and both men were ejected from the vehicle, thrown to the ground and pinned beneath it, “suffering severe physical injuries,” according to the lawsuit.

The complaint listed multiple perceived issues with Wohali’s golf cart management, including the steep grade of the path, “inadequate or absent” warning signs and “an uneven and worn surface condition consistent with prior sliding events, indicating a recurring problem.”

“A second golf cart in Plaintiffs’ foursome, operated by other members of their group, experienced (a) similar brake-lock malfunction in the same location moments later, narrowly avoiding a similar rollover,” court documents said. “The recurrence of identical brake failure under identical conditions demonstrates a systemic mechanical defect and/or negligent maintenance, not operator error or an isolated incident.”

The lawsuit claimed Clack and Duley were operating the golf cart carefully in a “prudent manner consistent with ordinary use” and that the duo “did nothing to cause, contribute to or exacerbate the incident.”

The complaint said the defendants “should have known” of the path’s “dangerous condition,” as well as the “absence of protective safety features.”

“The risks that materialized in this incident were not inherent risks of golfing or normal golf cart operation and were not risks that Plaintiffs knowingly and voluntarily assumed,” the lawsuit said.

Specifically, the complaint claimed Wohali Partners were negligent for reportedly offering the golfers a defective vehicle in addition to failing to maintain the premises “in a reasonably safe condition.”

Clack and Duley requested a jury trial to settle the dispute. They’re asking to be awarded general damages and special damages, including medical expenses and lost wages.

Wohali Partners has not yet responded to the lawsuit.

Wohali Land Estates, the real estate arm of the Wohali development, declared bankruptcy in federal court last year after a series of lawsuits were filed with claims that the company had failed to pay contractors for work done on the property.

The business listed a reported debt totaling almost $13 million for its top 20 creditors alone, with an estimated 100 to 199 creditors owed between $100 million and $500 million.

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The real estate company spearheading the construction of a luxury housing development near Coalville narrowly avoided foreclosure on Monday after a federal judge greenlit a $4 million loan to temporarily keep the business afloat.

Wohali Land Estates declared bankruptcy in federal court this summer, listing a reported debt totaling more than $13 million. The company specifically filed for Chapter 11 bankruptcy, which offers those in debt an opportunity to restructure operations and finances rather than force a sale.

However, Wohali Land Estates allegedly failed to pay a $3.3 million bill to Coalville on Dec. 1, putting the company at risk of foreclosure.

Wohali developers and the Coalville City Council created a public infrastructure district in 2018 with the intent that Wohali would receive funding for its project while bolstering city infrastructure, including the sewer system. The missed payment earlier this month was slated to pay off a portion of the debt incurred from the public infrastructure district, which required the city and developer to issue millions of dollars in bonds that Wohali was responsible for reimbursing.

State code requires foreclosure proceedings to begin on a property if a developer misses a public infrastructure district repayment. But Chief Judge Peggy Hunt on Monday authorized a $4 million loan to cover the bill in addition to funding other immediate expenses, such as employee salaries.

The loan will be issued by a foreign investment company that is already on the list of Wohali’s top creditors. Other investors, including Park City-based billionaire Doug Bergeron, opposed the loan, though, offering alternatives with the hope that the judge would instead choose their proposal.

They said they were worried the foreign company was angling for a quick foreclosure, as the top creditors in line for repayment would have an advantage in any potential auction if the Wohali property were to go to sale. Bergeron previously stated he was interested in purchasing the Wohali project and revitalizing it as a mixed community of real estate owners and tourists with a hotel on the property.

Hunt described her decision to go with the foreign company as an “interim ruling,” meaning how Wohali is funded through the bankruptcy process may change at a later date. The next hearing is scheduled for Jan. 22.

Wohali Land Estates had already been named as a defendant in multiple civil lawsuits related to alleged financial mismanagement by the time the company declared bankruptcy in August. Court filings indicated the real estate business had between 100 and 199 creditors who were owed between $100 million and $500 million, with an additional list detailing that the company owes $12,908,637 to its top 20 creditors alone.

Two of the companies listed as Wohali’s top creditors — Eave Solar and Knight Trucking — had already filed lawsuits against Wohali Land Estates demanding payment for provided services earlier this year.

Sierra Pacific Windows similarly filed a claim against Wohali Land Estates shortly after the bankruptcy filing, alleging the construction arm of the development enterprise had ordered and received $162,574 in materials and had yet to pay the cost.

Court proceedings for those lawsuits are largely on pause until the federal bankruptcy case is resolved.

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A Park City-based billionaire says he’s interested in purchasing and revitalizing Wohali if the development near Coalville goes to auction as part of the company’s bankruptcy proceedings.

Doug Bergeron, known locally for building and selling the $65 million Deer Valley home featured in HBO’s “Mountainhead” film, has a lengthy history of flipping underperforming companies. In 2001, for example, Bergeron led the acquisition of Verifone from Hewlett-Packard, buying the electronic payment company for $50 million and increasing its value to $5 billion over the course of 10 years.

Now, though, Bergeron has his sights set on a local investment: the embattled luxury real estate development approximately five minutes west of Echo Reservoir.

“They have a chicken and the egg problem here because they need to make a much more believable plan for how to build out this lifestyle in order to get lifestyle clients,” Bergeron explained during an interview at The Park Record office. “If they don’t get lifestyle clients, nobody’s going to live there. Without the lifestyle and without the neighbors, it’s just another ranch.”

Wohali billed itself as a luxury development with community amenities, a golf course and acres of privatized open spaces, but the company spearheading construction ran into legal issues earlier this year. The business has since declared Chapter 11 bankruptcy in federal court, and a handful of contractors separately filed their own lawsuits naming Wohali as a defendant, alleging the developer owes them money for work executed on the property.

Wohali Land Estates in its bankruptcy filings estimated between 100 and 199 creditors were owed between $100 million and $500 million. Court documents further indicated the company owes approximately $12,908,637 to its top 20 creditors alone.

“We know the place is a train wreck right now,” Bergeron said. “The cardinal sin here was then using their suppliers and vendors as their creditors. … Unfortunately, at least through the eyes of federal bankruptcy laws, they are unsecured. They have nothing to go back on. They can whine and scream and yell and call town hall meetings and sue because everybody sues, but they’re junior to (investors) that loaned them $75 million.”

The Park Record has been unable to reach Wohali representatives for comment on the company’s finances.

Bergeron characterized what he saw as other key missteps in Wohali’s development process, including flaws in how the company approached selling lots and raising funds for construction.

He claimed the development’s management should have focused on equity capital, saying investors should have been asked to contribute money in return for a share of the profits after the project’s completion, similar to buying stock.

“Instead, from my readings, there was a small amount of capital raised, relatively speaking, by a group of investors … anywhere between 25 and 50 other people,” he said. “And then a much bigger amount was borrowed. That’s kind of dangerous. You can borrow to build your second dry cleaner because you’ve already got customers for the first one who can pay the interest, but they didn’t have any income. They hadn’t sold the lots yet, so therefore, they landed on an expectation several years ago around how fast they could sell these lots, and the sale of the lots would become replacement capital.”

In that scenario, Bergeron said, it’s easy for things to derail.

“All that has to go wrong is you don’t get the prices you want,” he explained. “New competition shows up. It’s not the only place you can play golf and live and have access to ski resorts, but probably the biggest error in financial planning here was the cadence at which they would sell the lots. … If you’ve borrowed money versus equitized money, that makes a big difference because you’ve got interest. It’s still accruing, like a credit card gone bad. You’re paying every month without even buying anything because you’re paying interest on past purchases.”

It’s a difficult situation to escape, even with the backing of wealthy investors, because money is needed to pay back debts in addition to continuing construction. Bergeron said he’s the right person for the job, though, which is why he and his legal team are already working on a plan to acquire the property if it goes to auction as part of Wohali’s bankruptcy proceedings.

However, Bergeron said Wohali would likely look a little different under his leadership.

“I could fund maintenance of the golf course for as long as it takes to fill up that community,” he said. “My thinking is the community, given where they are, you’d likely want to reimagine the idea of this clubhouse and think about it as a luxury hotel and spa. That could attract golfers and non-golfers.”

Bergeron’s idea is to create a mixed community of real estate owners and tourists. Lot owners would still have the chance to live on the Wohali property and tourists would get to visit and experience the luxurious offerings while also providing a steady stream of income to the development.

Specifically, Bergeron mentioned giving a 100-year lease to a hotel developer to “let them build the greatest hotel they can imagine” while also establishing a nationally renowned wellness spa.

“The spa is not just for golfers because I don’t think there are enough to make a great spa,” he said. “The restaurant isn’t just for residents. It’s for everyone from Park City who wants to take a day trip or drive 15 minutes down I-80. I think there’s an opportunity here.”

Reception to Bergeron’s proposal among the local business community has been mostly positive so far, he said, especially because one of his top priorities is to ensure local creditors are paid if he takes charge of the project. In general, Bergeron said the development contributes to the local community in other ways, too, even if the amenities are largely geared toward wealthy tourists, because of how it would expand the area’s tax base.

The increased tax base would then contribute funds to local law enforcement, schools and infrastructure, benefitting full-time residents and Wohali visitors alike.

“In my case, I’m sure we’ll be back, if we’re successful, with the county and with the town revising what the expectations are, but it’s in everyone’s interest that projects like this are successful,” Bergeron said.

Bankruptcy proceedings typically move through the court system fairly quickly compared to other cases. Bergeron said he hopes to have a better idea of whether the property will go to auction in the coming months. 

In the meantime, he plans to continue ironing out his proposal for the resort and gauging community interest, acknowledging he’ll have an uphill battle in terms of the development’s reputation among locals right now.

“We need town halls, meetings, to get everybody on board with what the new face is going to look like, to get them excited about it. We’re going to need their patience, too,” he said. “Rome wasn’t built in a day, and Rome got torn down a few times, but this doesn’t need a teardown.”

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A third contracting company filed a lawsuit against Wohali Land Estates for unpaid debts just days after the luxury real estate developer filed for bankruptcy in federal court.

Sierra Pacific Windows last week submitted a notice in Summit County’s Third District Court alleging Wohali Builders, the construction arm of the development enterprise, ordered and received $162,574 in materials and has yet to pay the cost.

Court documents additionally show the window company recorded a construction lien with the Summit County government in an attempt to force a foreclosure on the Wohali property to finance the unpaid bill.

The company requested payment for the invoice with an interest rate of 18% per annum “from the dates payments were due, until paid in full, plus attorney’s fees and costs,” an agreement Sierra Pacific Windows’ attorneys said was included in the initial contract between the company and Wohali management.

“To permit Defendants to retain the benefit without compensating Sierra would result in the unjust enrichment of Defendants at the expense of Sierra, which should not be allowed,” the complaint added.

The lawsuit is the fifth filed this year against the embattled luxury real estate developer, which filed for bankruptcy with a reported debt totaling more than $13 million earlier this month. Court documents indicated Wohali Land Estates hopes to reorganize the business to handle, and eventually pay off, its existing debt rather than disbanding the company — and abandoning the project altogether.

Shortly after the bankruptcy filing, a group of “concerned owners” who had invested in Wohali petitioned the court to allow the company to continue paying for “certain administrative expenses.” Specifically, they asked for an emergency approval of $161,689 in payments to “key employees of the golf course and resort” because payroll was due on Aug. 15.

“Keeping this golf course alive and operating is a top priority to preserve the value of the estate,” the emergency request document said. “If payroll is not made, key employees would likely quit and move on, and, as a result, the resort and golf course likely would be seriously degraded or cease to function.”

The landowners offered to pay the $161,689 amount from their own pockets as part of a one-time agreement, and Judge Peggy Hunt granted their request on Friday, the same day payroll was due.

Wohali Land Estates estimated it had between 100 and 199 creditors who were owed between $100 million and $500 million in its Chapter 11 bankruptcy filing in federal court, providing an additional list detailing that the company owes approximately $12,908,637 to its top 20 creditors alone.

Sierra Pacific Windows was included on the list of the top 20 creditors.

Two of the other companies listed as top creditors — Eave Solar and Knight Trucking — had already filed lawsuits against Wohali Land Estates this summer, demanding payment for provided services.

Eave Solar, a company committed to “delivering cutting-edge solar technologies” in Utah, filed its claim in July with allegations that the business was owed approximately $489,492 for work on six different lots within the development.

Knight Trucking, meanwhile, similarly claimed in a separate filing that Wohali failed to pay around $119,255 for the business’s work hauling materials to and from the construction site between Jan. 10 and May 28.

Thomas Cottone, who is a founding member of Wohali Builders, also filed two lawsuits against the company, a key executive and one of the business’s investors. In addition to financial mismanagement allegations, Cottone claimed the executive and investor engaged in coordinated retaliation efforts to defame him and remove him from his position on the board after he attempted to voice concerns and reestablish oversight through further financial controls.

The post Third company sues Wohali days after company files for bankruptcy appeared first on Park Record.

The real estate company spearheading the construction of a luxury housing development near Coalville, Wohali Land Estates, filed for bankruptcy in federal court last week with a reported debt totaling more than $13 million.

The company had already been named as defendants in four separate civil lawsuits related to alleged financial mismanagement and voluntarily submitted a petition declaring Chapter 11 bankruptcy on Friday. Court documents appear to indicate Wohali Land Estates hopes to reorganize the business to handle, and eventually pay off, its existing debt rather than disbanding the company — and abandoning the project altogether.

Wohali also listed six pieces of “real property” requiring ongoing attention throughout the bankruptcy proceedings, including maintenance of the golf course; securing the site around the construction of a public roadway; public infrastructure improvements, such as municipal sewer upgrades, because of the “general health and safety risk affecting the public”; basic utility services; securing, protecting and continuing work on structures at-risk from inclement weather; and stabilizing construction zones on the golf course to prevent erosion.

The real estate business estimated it had between 100 and 199 creditors who were owed between $100 million and $500 million, providing an additional list detailing that the company owes approximately $12,908,637 to its top 20 creditors alone.

Two of the companies listed as Wohali’s top creditors — Eave Solar and Knight Trucking — had already filed lawsuits against Wohali Land Estates demanding payment for provided services earlier this year.

Eave Solar, a company committed to “delivering cutting-edge solar technologies” in Utah, filed its lawsuit against Wohali in July with allegations that the business was owed approximately $489,492 for work on six different lots within the development.

The complaint detailed documentation of the solar company’s attempts to contact Wohali for payment, including six preliminary notices filed in February and March with the State Construction Registry, a government agency intended to “protect public health, safety and welfare by promoting a fair working environment for construction projects in Utah.”

Knight Trucking, a transportation services company with a terminal in Salt Lake City, similarly claimed in a separate lawsuit that Wohali failed to pay around $119,255 for the business’s work hauling materials to and from the construction site between Jan. 10 and May 28.

Thomas Cottone, who is a founding member of Wohali Builders, also filed two lawsuits against the company, a key executive and one of the business’s investors earlier this year. In addition to financial mismanagement allegations, Cottone claimed the executives engaged in coordinated retaliation efforts to defame him and remove him from his position on the board after he attempted to voice concerns and reestablish oversight through further financial controls.

John Kaiser, the Wohali executive named as a defendant in Cottone’s litigation alongside investor Matthew Galioto, has been working to bring his vision of the multimillion-dollar project to life in eastern Summit County for the past eight years. Cottone, however, claimed Kaiser and Galioto accused him of misconduct “in a series of emails, meetings and calls with the project’s investors” after Cottone encouraged the development company to agree to an audit, improve financial controls and provide transparency regarding business transactions.

Cottone said his reputation was “irreparably tarnished” as a result, and he was subsequently removed from his leadership position with the project.

Throughout the lawsuit, he also alleged Kaiser has a history of fraud connected to similar development projects across the country, including a 2015 civil case in Arizona in which Kaiser was ordered by a judge to pay defrauded investors $515,000.

In 2013, Kaiser testified against his former business partner, who was ultimately convicted of defrauding investors in New York. The criminal case was Kaiser’s introduction to Galioto, an FBI investigator who worked the case and used him as a witness.

“On information and belief, it is highly irregular and against standard practice for a law enforcement officer and his former source — in a complex fraud action involving real estate developments — to enter into a substantial business relationship, also involving a development project, with a key witness,” the lawsuit said.

Cottone became involved with the project in 2017. He grew the investor pool to 65 members and $25 million in contributions, as well as securing a $79 million loan, before he voiced concerns about financial mismanagement in late 2022. He was then ousted from the company and the project in retaliation for becoming a whistleblower, Cottone’s lawsuit alleged.

“Cottone would later learn that months before Kaiser shut him out, he also tried to inhibit Cottone’s ability to maintain the required checks and balances — and justify his own obstruction — by initiating a smear campaign against Cottone amongst Wohali Builders employees, generally accusing Cottone of being a bad guy who was untrustworthy and committing nefarious and potentially ‘illegal’ acts,” the complaint said.

Cottone asked for a total of $195 million in damages — $65 million for each claim of defamation, invasion of privacy and interference with Cottone’s economic relations — as well as attorney’s fees.

The libel lawsuit involving Kaiser and Galioto has a motion hearing scheduled for 2 p.m. on Nov. 18.

Kaiser, who referred to himself as the company’s “manager” in court documents, signed the voluntary bankruptcy petition on behalf of Wohali Land Estates.

Neither the bankruptcy case nor the three other civil cases have court hearings scheduled as of Monday afternoon.

Filing Chapter 11 bankruptcy gives Wohali time to reorganize the company’s finances with oversight from a court-appointed trustee before entering into a debt repayment plan. If Wohali successfully engages in the process and completes its repayment plan, then the business will resolve its debts and continue operations.

However, if Wohali fails to reorganize its finances, then the business will likely be forced to liquidate its assets and disband the company.

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