Utah’s federal bankruptcy court has scheduled the western Coalville golf resort’s auction for April 24. The deadline for bids is April 20, with closing set for May 13.
Some Wohali creditors have been jockeying for the best position to buy the resort since it filed for Chapter 11 bankruptcy last year.
The largest creditor, a group of foreign investors represented by the company EB5AN, are first in line to get paid back and may be the first to bid.
The group loaned Wohali about $79 million through the federal EB-5 Immigrant Investor Program and says the resort defaulted, now owing its dozens of members more than $86 million total.
Trustee Matt McKinlay told the bankruptcy court April 2 he’s proposed an agreement that would allow the EB5 group to use that debt as cash to bid on Wohali.
The draft agreement says EB5 would start the bidding at $65 million. EB5 would also ensure $3 million to $4 million is left to reimburse other creditors.
That’s been a major concern among other creditors, particularly those who bought future homesites and are also out hundreds of thousands of dollars.
Court records indicate the “Wohali concerned owners” group doesn’t want EB5 to buy the resort. The two groups agreed to start mediation.
“In large part, the concerned owners want to slow down the sale process,” Judge Hunt said during an April 3 ruling on the auction timeline.
The future homeowners say there are three plots of land that won’t be part of the coming sale but should. Two of them contain a “strategically critical” water pump and the main access road, Wohali Way.
Hunt found the sale can proceed without those assets. McKinlay says Wohali will fetch a higher price if the sale happens sooner.
“Inclusion of the three parcels would be one more item that a potential buyer could check off the problem list,” Hunt said. “But in the grand scheme of things, a potential buyer is going to be more concerned with other things, like the unfinished utilities.”
According to the trustee’s court filings, efforts to market the property suggest that it won’t sell for more than $65 million.
The other reason to act fast is that a separate EB5 loan totalling more than $6 million is coming due at the end of April.
To preserve Wohali’s value, the resort plans to open for golf this summer. McKinlay’s attorney Ellen Ostrow said in February that Wohali can fill a gap in the Wasatch Back.
“There are certain golf courses that have been shut for construction, and so we think there's a market there that would allow for the golf course to run through the summer without incurring additional [debt],” Ostrow said.
Jeremy Ranch Golf and Country Club and the Golf Club at Homestead are closed for renovations this summer.
The trustee is offering 150 $15,000 memberships to play Wohali in 2026. All of them need to sell for the course to open.
“Course attendants will be on property to assist as needed, though staffing levels will remain limited,” advertising materials state. “As the broader project continues to progress, construction activity may be visible in nearby areas, and parking will be accommodated in a graveled lot.”
If Wohali doesn’t sell all 150 memberships, those who do buy one will get a refund.
