Last week I posted that Promontory had emerged from bankruptcy with a valid agreement that garnered the approval of all the parties involved.
As a part of this agreement, Credit Suisse (who has functioned as the voice of most of the lien holders) was given seven days to raise $70 million in exit financing. As of today, Credit Suisse has given notice that it was unable to raise the necessary money.
Pursuant to the agreed upon terms this opens Promontory up to a bidding process wherein bids must be received by April 13, 2009. The auction itself will be held on April 15th, with the court set to certify the auction results on the 17th.
As I mentioned last week, I still think Promontory has spectacular potential as an investment. A June 2008 appraisal pegged the development’s value at $560 million. But I think the true value is it’s unique nature, and spectacular location. With the existing golf courses, club houses, and other infrastructure I think it fits as an ideal example of a true vacation destination. It offers opportunities for golfers and non golfers alike.
More information will follow soon, and as it does, I’ll update this post.
UPDATE (3/20 3:13 PM): The auction won’t negate so called “key aspects” of the bankruptcy plan, and according to Rich Sonntag, Managing Director of Promontory, “The auction allows other parties who are more directly involved in the development business to bid for control and may even accelerate Promontory’s rebound from bankruptcy under the guidance of a qualified developer.”
