"We've been working with our lenders to try to restructure our debt, so this is a way to be able to do it," said Chris Wicke, a spokesman for Fairvue Club Properties LLC and its president, Leon Moore.
The filing comes two months after Moore sent Fairvue Plantation residents a letter to inform them of a temporary cut in services, such as a reduction in evening hours during the week for a la carte dining.
Shortly thereafter, one of the development's two 18-holes golf courses was closed until March 1.
RelatedMAP: Fairvue PlantationThe bankruptcy filing reflects a tough environment for country clubs and the luxury real estate industry. Homes listed for sale at Fairvue Plantation currently run between $380,000 and $1.3 million.
Fairvue Plantation is a prominent Sumner County development combining residential property with country club amenities, including the 18-hole golf courses. The plantation stretches along five miles of the Old Hickory Lake shoreline in Gallatin.
According to bankruptcy documents, Fairvue Club Properties owes $10 million to $50 million to hundreds of creditors.
Lawsuit is pendingConstruction-related and developer bankruptcies have continued to rise here and nationally amid a tough economy, and many homebuilders have found it hard to secure bank loans.
A full list of creditors hasn't been filed in the Fairvue bankruptcy case, but the group does include American Security Bank & Trust Co., whose founders included Moore, a well-known area businessman with lodging and residential real estate interests.
American Security has a lawsuit pending against Moore in Sumner County Chancery Court and has asked the court to appoint a receiver to manage the country club. A lawyer for the bank declined to comment. Another creditor, First State Bank, had also filed its intention to foreclose on the clubhouse later this month.
Fairvue Club Properties' bankruptcy filing doesn't include Fairvue Plantation real estate development companies. That's because the club's assets were moved out of the development to a separate entity earlier this year. Now, the club wants to restructure its debt to better fit with its operations, Wicke said. Overall, Fairvue Plantation includes nearly 400 homes already built or under construction. Work continues on up to a dozen homes, Wicke said.
Reach Getahn Ward at 615-726-5968 or gward@tennessean.com.
Middle Tennessee business bankruptciesFull-Service Development
