Hawthorns Golf club committee objects to amended disclosure statement

By Kali Hays

New York, July 28 – The unsecured club members committee for Hamilton Proper Partners Golf Partnership, LP, which does business as Hawthorns Golf & Country Club, objected to the company’s proposed disclosure statement, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Indiana.

As previously reported, Hamilton Proper and its secured creditor HGCC Lender, LLC filed amended competing plans of reorganization and related disclosure statements July 25.

According to the committee’s objection, Hamilton Proper’s disclosure statement “contains material inaccuracies and omits several pieces of information that creditors need in order to make an intelligent decision on whether to vote for or against the plan.”

Specifically, the committee objected to the schedule for refunding resigned club members’ initiation fees, which is slower than the schedule under HGCC’s plan; language surrounding the refund of current members’ fees, which claims refunds will happen in five years but “in reality will take at least 80 years” based on Hamilton Proper’s projections; a misrepresentation of the company’s projected savings under a replacement loan; a lack of explanation on how it intends to pay for management fees and inadequate descriptions of claimant classes.

The committee asked that the court require Hamilton Proper to further amend its proposed disclosure statement to reflect its objections in order for the company to receive approval.

A hearing to approve the disclosure statements is scheduled for July 30.

Hamilton Proper, the Indianapolis-based owner of private membership golf club Hawthorns, filed for bankruptcy on Jan. 24. The Chapter 11 case number is 14-00461.

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