In an attempt to restructure under a business bankruptcy the Doral Golf Resort & Spa in Florida is being put up for sale. According to the filing, the owners hope to hold on to one of the five Doral courses, and expect it to take several months for the other four courses to sell.
The investors of the Doral Golf Resort & Spa took control of a total of eight properties that were up for foreclosure earlier this year, and then filed for bankruptcy on five of the properties. The decision to sell the golf courses in an attempt to restructure some debts under the Chapter 11 bankruptcy was announced this week.
Strategically choosing to sell the Doral, that has not only hosted the U.S. PGA Tour event, but has also became the home to the World Golf Championship, is a decision the owners made in order reduce overall debt and further create a reorganization plan in an attempt to secure financial success.
In terms of the Chapter 11 bankruptcy decision, the owners of the Doral are certainly not alone in taking this route to reorganize debt, as over the years - especially with the recession - many businesses have chosen to file for bankruptcy as a way to either liquidate or save their business.
When looking at the decision to file for bankruptcy, the best choice for an owner or owners is all dependent on what their end goal is. Do the owners just want out of the business and want to discharge their debt? Then a liquidation Chapter 7 business bankruptcy may be the best choice. Or do they want to just reorganize debts into a more manageable scenario? Then a Chapter 11 might just be the best choice. In some situations the best decision might also be a Chapter 13, which is when a repayment plan is created.
In all scenarios, before making a filing decision it's important for owners to look at the business' current situation and then evaluate their goals.
Source: Bloomberg, "Doral Golf Resort & Spa in Miami Is Put Up for Sale Following Bankruptcy," David McLaughlin, 10 May 2011