Agassi should have stuck with tennis

As we wrote on July 26, 2007, Agassi made a horrible bet on property (development of a Fairmont hotel) at the peak of the cycle.  Less than 7 months later, the resort itself is now filing Chapter 11.  Makes you wonder about “financial advisors.”

Tamarack Resort In Idaho Files Chapter 11

New West Business is reporting Tamarack Resort Owners File for Bankruptcy Protection

The majority owners of tony Tamarack Resort in west-central Idaho, owing more than $300 million to lenders and international banks, filed for bankruptcy protection in the U.S. Bankruptcy Court in Boise late last week.

According to Tamarack Resort CEO Jean-Pierre Boespflug, the Chapter 11 filing will have no impact on the resort’s day-to-day operation. “You can continue to do business with Tamarack Resort in a complete and normal way,” he said in an interview.

Boespflug said the resort was counting on a $118 million dollar loan from the French bank Société Générale to complete the resort village, but the financing fell through. Société Générale is reeling from the loss of some $7 billion in a trading scandal, and banks around the world are pulling back from many types of loans in the wake of the sub-prime mortgage crisis and related problems in the finance world.

Because Tamarack did not receive the money by February 15-the day the bankruptcies were filed-the companies sought Chapter 11 bankruptcy protection to avoid foreclosure by creditor Credit Suisse, which is owed $262 million. Credit Suisse could have ended up with 75 percent ownership of the resort, and been “able to sell the company to whoever it wants,” Boespflug said.

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This entry was posted in Bankruptcy, Herd Mentality, Liquidity, Real Estate, U.S. by Ron Mahabir. Bookmark the permalink.

About Ron Mahabir

Ron has been focused on major macro trends since the mid-1990’s when he began investing in early-stage Internet companies. In 1999, Ron moved to Tokyo to concentrate on the opportunity provided by the Asian Financial Crisis. He established the Japan office for Colony Capital, a Los Angeles based private equity group which has invested over US$39 billion. As President of Colony Japan, Ron oversaw the acquisition, management and disposition of corporate, non-performing loan and property transactions. In 2004, Ron foresaw the makings of a credit bubble and until late 2006 led an investment in and turnaround of the largest mortgage default communications company in North America, The Walz Group. Since acquisition, The Walz Group has experienced significant growth and was listed at #45 on the Inc. 5000 (2008). In anticipation of the largest emerging macro opportunity, the twin crises in resources and the environment, Ron co-founded Asia Cleantech Capital in late 2006. Based in Singapore, Asia Cleantech is focused on investment in clean forms of transportation and power for the Asia Pacific. Ron graduated with honors from the Haas School of Business at the University of California, Berkeley.

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