BREAKING NEWS:

Links Group Receives Another Extension

By Shane Sharp,
Contributing Writer

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MYRTLE BEACH, S.C. (Nov. 27, 2001) - The Links Group, the Grand Strand’s largest golf course management company, has been granted another chance to produce enough money to get itself back in the good graces of the U.S. Bankruptcy Court.

The company received an extension for the implementation of its Chapter 11 bankruptcy reorganization plan from the federal court in Columbia. The Links Group now has until Dec. 17 to produce $1.8 million to implement its plan.

The company was scheduled to come out of bankruptcy on Oct. 5, but MemberTee Management LLC, the investor named in the court papers, was unable to produce the necessary funding on schedule.

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“To say that the (Bankruptcy) Court has been kind to them is the business understatement of the year,” said one source close to MyrtleBeachGolf.com. “It seems as if the money was available, it would have been produced by now.”

The company, which operates 12 Myrtle Beach area golf courses, filed for bankruptcy in January. The Court approved the Links Group’s reorganization plan in August, but the approval was contingent upon an infusion of capital from MemberTee Management that was to range from $1.8 to $4 million.

The Links Group owed its creditors millions of dollars, according to court papers, including a restructured $2.4 million loan with Bank of America, and $60,000 of past membership dues to Grand Strand marketing giant Myrtle Beach Golf Holiday.

Its reorganization plan was centered on an expansion plan that called for the acquisition of up to 20 new leases in the Myrtle Beach and Hilton Head areas. That expansion plan started with the newly opened Farmstead Golf Club in Calabash, N.C., and its sister course, the Meadowlands, and has included the addition of three other leases outside of the Grand Strand.

Cal Rogers, President of MemberTee Management, said that he fully expects his company to come up with the necessary funds by the Dec. 17 deadline.

“That was our first extension, and that is why we got it (because the funds will be available),” Rogers told MyrtleBeachGolf.com.

When asked about the expansion plan in the Grand Strand, Rogers said that the Links Group and the owners of Farmstead and the Meadowlands were experiencing difficulties with their agreement.

“We currently retain the leases to those courses, but there are some issues that have arisen,” Rogers said.

The Links Group has until the Dec. 17 deadline to produce the minimum $1.8 million in financing to implement the reorganization plan. Under the court approved plan, MemberTee Management LLC will provide at least $1.8 million and up to $4 million in funding through the purchase of preferred shares.

MemberTee, which currently operates out of the Links Group’s offices in Myrtle Beach, was established with the intent of buying out the Links Group. If MemberTree produces the funding, it will own 75 percent of the company, and ClubLink Corp. of Canada would hold 25 percent. At the time of the filing, ClubLink owned 92 percent of the Links Group’s stock.

Rogers would become the chief executive officer under the proposed reorganization, with an annual salary of $156,600. Incumbent Links Group President Ken Folkes would retain his position with a $140,940 annual salary. Under the reorganization plan, Both Rogers and Folkes salaries are contingent upon the number of courses the company operates.

Shane Sharp is a Contributing Writer with TravelGolf.com. Contact him at sharp@travelgolf.com.