Fairvue Club files for Chapter 11
High-end Gallatin development facing foreclosure
Print By J.R. Lind
12-01-2009 3:20 PM —One of Middle Tennessee's largest luxury home developments filed for bankruptcy Monday.
Gallatin's Fairvue Club Properties filed for Chapter 11 protection, six weeks after the club announced it was reducing services to its members in a cost-savings plan.
The development, which was to be a combination of country club and high-end subdivision on Old Hickory Lake, shut down one of its two golf courses in October and reduced dinner seatings at its clubhouse to Wednesdays, Fridays and Saturdays.
Club employees were called to meet with club General Manager David Beard Tuesday morning and a letter will be sent to club members later this week. The club was facing foreclosure Dec. 18.
The filing lists between 200 and 999 creditors, assets between $10 million and $50 million and debts in the same range.
Fairvue Club Properties LLC is subsidiary of TLP Devco, whose sole owner is Leon Moore , chairman and CEO of the former lodging development and franchising company ShoLodge.
I think it is important to understand that the U S Bankruptcy laws were created to protect both Debtors and Creditors. The Chapter 11 filings of big 3 automotive companies and their destruction of stockholder equity is looked on as a successful use of the same laws. When a private entity uses the same business protection tools it somehow becomes personal, and we try to find some sinister fault.
There are business reasons to use the Bankruptcy Protections when certain creditors become preditory in their persuit of assets that would be detrimental to others. In this case Members of the club as well as other creditors. Reporting of these events need to be factual, fair and balanced to look for the intentions and reasons behind the actions.
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