On Jan. 30, 2013, the court-appointed receiver for The Golf Club of Dublin, LLC, held a public sale of the club’s assets, consisting of various equipment and other personal property, including its interest as the lessee of the golf course real estate and improvements owned by the City of Dublin. The sale did not include the real estate; the City continues to own all of the real estate subject to the existing lease. The sale was made after published notice and advertising, all in accordance with the court-approved order authorizing the receiver to sell the club’s assets.
GE Capital Corp., as the Golf Club of Dublin’s lender secured by liens on the club’s assets, obtained a judgment of several million dollars against Golf Club of Dublin and court approval to proceed with a public sale of the assets. The order authorizing the public sale permitted GE to bid on credit up to the amount of its judgment.
At the sale, the only bid received was from GE for $2.2 million. The receiver is now in the process of requesting the court confirm the sale to GE, which is expected to occur in the next 30 days. Should the sale be confirmed, GE will become the lessee of the Dublin ground lease and will be required under the lease to comply with all lease provisions and engage a qualified public golf course operator to manage all aspects of the course, the club house and all other facilities, including the lease provisions granting Dublin residents specified preferential benefits. Until the sale is confirmed by the court, the receiver will remain in place and Century Golf will continue to manage and operate the course and facilities as the authorized agent of the receiver.
Dublin’s legal counsel has had a preliminary discussion with GE and Century Golf is expected to continue to operate the facilities for the near term. Any proposal to change operators by GE would need to be approved by the City of Dublin.
Dublin expects that, for its residents and other users, the sale of the Golf Club of Dublin’s assets to GE should have no adverse impact on the Golf Club of Dublin’s operations for the upcoming golf season.