Lyle Anderson has lost control of Loch Lomond Golf Club to directors appointed by Bank of Scotland, the primary source of funding for several of Mr Anderson’s properties including Las Campanas, Superstition Mountain and Holuli’a
In a letter to members of his club Lyle Anderson confirms that directors appointed by the Bank have been in control of three of these properties since last January. On 31st October that control was extended to include Loch Lomond.
“I have enjoyed a long-term relationship with Bank of Scotland,” said Mr Anderson, “which in recent years has been the primary source of funding for several of my properties, including Las Campanas and also Superstition Mountain , Hokuli’a and Loch Lomond.
“Over the last several months, we have been in intensive discussions with the Bank about the future course of that relationship, in perhaps the worst real estate and financial markets of my lifetime. As a result of those discussions the Bank and my companies have entered into an agreement which affects my interests in all of the listed communities and clubs.
“As a result of agreements the Bank may appoint all directors of the companies which own and manage Las Campanas, Superstition Mountain , Hokuli’a and Loch Lomond . In January 2008, the Bank appointed Stephen Marotta and Philip J. Gund, of Marotta Gund Budd & Dzera, LLC ( “MGBD”), as the new sole directors of my companies owning Las Campanas, Superstition Mountain and Hokuli’a.
“Mr. Marotta and Mr. Gund continue to hold those positions today and as of today (31st October) they have been appointed as the new sole directors of my company which owns Loch Lomond.
“As directors, they decide the full range of issues normally decided by directors, including when particular improvements will move forward, when and how to communicate with members and owners, how to work with any lenders, including the Bank, and all other financial, strategic, operational and personnel matters at each of the named communities and clubs.
“My Scottsdale-based senior staff and I are no longer involved in the management of any of the named communities or clubs. When and if the Bank decides to do so, the Bank can take various actions to cause ownership of Las Campanas, Superstition Mountain, Hokuli’a and Loch Lomond to be transferred from my companies to the Bank or others.”
Well-financed owners to provide appropriate stewardship
Mr Anderson goes on to say, “Las Campanas, Superstition Mountain , Hokuli’a and Loch Lomond are extraordinary properties, the full value of which can be realized only by excellent stewardship and the completion of any unfinished work to the highest standard. The best way to realize the full value of the communities and clubs is to see that they are in the hands of well-financed owners who are in a position to provide appropriate stewardship as well as development and club management expertise.
“As a personal matter, I also have a very strong interest in the future of the communities and clubs and I have confirmed my willingness to cooperate in any such efforts if requested by the Bank or MGBD.
“The Bank no doubt will now intensify its efforts to find qualified potential new owners for the communities and clubs and I have agreed to cooperate in that effort. Separately, I am also continuing my own vigorous independent search for new equity or debt funding for the communities and clubs.”
No change for Loch Lomond
This announcement has had no immediate impact upon either the members or the staff at Loch Lomond Golf Club. The course will remain open until 21st December this year, the latest date that has ever been possible and this, said a spokesman, is entirely attributable to the success of the Club’s investment in drainage.
Lyle Anderson concludes, “Given today’s economic circumstances, I believe that the agreement between my companies and the Bank is in the best interests of owners and members and of our staff. I am deeply disappointed, however, that my companies and I have not found a way to overcome difficulties created by current market conditions – market conditions which do not reflect the tremendous long-term value of our communities and clubs. I am extremely proud of those properties, and I continue to believe strongly in their fundamental strength and great potential.”
Loch Lomond Golf Club www.lochlomond.com