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Laurelmor developers trying to stave off foreclosure
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Published: July 23, 2008
BOONE – Developers of Laurelmor, a 6,000-acre luxury golf resort in Watauga and Wilkes counties, are trying to stave off foreclosure after missing principal and interest payments on a $675 million loan for Laurelmor and three other resort communities.
The Ginn Cos., the development company founded by Bobby Ginn, is negotiating with Credit Suisse to restructure the loan. The lender agreed to delay its right to foreclosure until at least the end of the month. The loans are with two Ginn-affiliated companies: Ginn-LA CS Borrower LLC and Ginn-LA Conduit Lender Inc.
The companies failed to make a June 30 payment, and entered into a 30-day forbearance agreement. Such an agreement allows a company to keep its property while working out a new payment plan.
Lubert-Adler, a Philadelphia-based real estate private equity firm that works in partnership with Ginn, has contributed $5 million of equity to use for operations, according to a report by Standard & Poor's. The money will not be used for loan payments.
S&P recently lowered its credit ratings on the Ginn borrower company, as did Moody's Investors Services
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