A Charleston, SC, bankruptcy judge will soon decide if one of Myrtle Beach’s few private golf courses can go ahead with a reorganization plan that includes a sale to a North Carolina course operator. Three hundred members of The Reserve at Litchfield Beach voted overwhelmingly more than a year ago to turn the club over to the McConnell Group, which had promised more than $1 million in renovations and to keep the club private for at least 10 years.
The Group, led by founder John McConnell, had planned to add the
The major point of contention was raised by resigned and inactive members who would lose the chance to get back most of their initiation fees. Under the Reserve’s bylaws, a former member can receive up to 90% of his or her equity payment when four new members join. The deal with McConnell, who would pay $1 for the club plus its debts to secured creditors, would not include payment to the former members. The 175 resigned members have hired a lawyer to argue their case before the Charleston judge.
After five hours of testimony yesterday, according to the Myrtle Beach Sun News, the case was continued until today. We will keep our eye on the story.
