The U.S. Bankruptcy Court in the District of Utah is deliberating on the future of the Wohali resort in Coalville after hearing 10 hours of debate over three days before Thanksgiving.
Wohali filed for Chapter 11 bankruptcy protections in August to restructure at least $100 million in debts. Although some companies successfully create new business plans after going Chapter 11, Wohali may be sold instead.
Bankruptcy Judge Peggy Hunt has appointed businessman Matt McKinlay as the trustee to manage the resort during its bankruptcy.
He is now seeking a court-approved loan to preserve Wohali’s golf course and any other assets and then to set up a sale by March 2026.
Wohali’s largest — and most mysterious — creditor wants to lend McKinlay the money.
It’s a group of nonresidents using the federal government’s EB-5 Immigrant Investor Program, called EB5AN Wohali Utah Fund XV. The program allows lenders to get a visa or green card if they invest enough money and create at least 10 jobs.
EB5 lenders’ identities aren’t known, but they claim Wohali already owes them more than $85 million.
Some people who bought homesites in Wohali and Doug Bergeron, a prominent Park City billionaire, object to EB5’s loan terms and each propose their own.
Bergeron and the Wohali lot owners accuse the EB5 lenders of trying to leverage their status as the most important creditors to buy the resort for cheap at a “fire sale” in March.
Lot owners’ attorney Jason Hardin told the judge Nov. 24 he thinks further investigation will unearth “inequitable conduct” by the EB5 lenders.
His clients claim the foreign lenders carelessly lent money to Wohali so that they could get the maximum number of visas, without making sure the money was well spent.
“[The EB5 lenders] carelessly handed out massive sums to [Wohali] and its affiliates to get as many visas for its limited partner investors as possible, rather than doing anything to ensure [Wohali] was spending the loaned money reasonably,” the lot owners’ court papers state.
Bergeron agrees and added that a March sale wouldn’t fetch the highest price in part because the Wohali golf course would be under snow.
McKinlay testified he had the same concern at first but is now convinced that it can be marketed effectively, including with extensive drone footage. He said there are already six interested buyers.
Bergeron, who made his money selling VeriFone credit card payment terminals and developed the Deer Valley mansion in HBO’s “Mountainhead,” wants to buy Wohali himself.
EB5’s attorney Michael Johnson pointed out that Bergeron didn’t have standing in the bankruptcy case until two days before testimony began Nov. 19.
Bergeron bought out an oil company’s roughly $2,900 claim against Wohali for $2,000.
“To assuage [Bergeron’s] stated concerns about creditors obtaining maximum recoveries in this case, EB5 is prepared to remit $2,944.53 to [Bergeron] forthwith to satisfy [his] claims in full,” EB5 representative Michael Schoenfeld testified in court papers.
McKinlay’s attorney Ellen Ostrow said it’s rare for a bankrupt business to have so many loan offers but that EB5 is still offering the best deal.
“We have received multiple complaints about EB5’s prepetition conduct and actions, and the trustee has taken those seriously and has run those to ground,” she told the court early on during testimony. Ostrow repeatedly emphasized that it's McKinlay's role to exercise business judgment, “and he has properly exercised that business judgment.”
Hunt said she would review the competing loan terms before issuing a ruling. Wohali’s next date in bankruptcy court is Wednesday, Dec. 3.
The resort’s market value is contested.
According to McKinlay, broker estimates have ranged from $50 million to $150 million for the whole property.
He said there were two formal appraisals prior to his appointment as trustee in April and in August. They valued Wohali at $147 million and $67 million respectively; EB5 commissioned the lesser appraisal.
As McKinlay has solicited starting auction bids, he said none have been more than the $85 million owed to EB5. That’s why the foreign creditors are poised to acquire Wohali at an auction.
According to McKinlay’s attorney, Wohali had 55 employees as of September 2025, mostly for the golf course.
