The developers of the Laurel Cove golf course community in Williamson County are planning to refinance after the bankruptcy of lender Lehman Brothers Holdings Inc.
Tentara Partners and Legacy Properties will turn to private investors to complete the
$121 million development on Arno Road, Tentara president and chief executive Philip Jones said Wednesday.
The move comes because Lehman Brothers suspended payments on a $70 million construction loan for the project when it filed for Chapter 11 bankruptcy last month.
Since then, Franklin-based Tentara and Legacy have been funding construction of Laurel Cove from a bond, Jones said.
"It's very important to know that Lehman Brothers, but not Laurel Cove, is in bankruptcy," Jones said. "It's a setback in terms that Wall Street is affecting Main Street."
Laurel Cove has asked the judge in the case, which is filed in New York City, to let the company buy back its loan.
That will enable Laurel Cove to secure new financing from a group of private investors led by Legacy, a Danbury, Conn., firm that specializes in golf course development.
Refinancing should take two to four months, and Laurel Cove's first phase should be completed in the spring, Jones said.
In the meantime, work on the 18-hole golf course, which was designed by Greg Norman, has been stopped for the winter but will resume in the spring, Jones said.
Arno Road upgrades that the county has required of the developers will continue while the refinancing plan is completed.
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