Previously it was announced that the members of Shadow Wood Country Clubb (SWCC) reached and agreement with Bonita Bay Groud (BBG) to purchase both the Golf Club at Shadow Wood and The Commons Club amenity center. This was confirmed in a press release by BBG on September 1st.

In a blog post written to the members yesterday - 9/9/09 - it was reported that the deal is dead.

Why? The paramount issue in this deal, as well as golf club buyouts all over, is the huge liability on the books for member deposits. The chief restructuring officer for BBG, in a recent meeting, stated that BBG is adding a requirement that limits BBG's liability to $250,000. The current deposit liability for both clubs is on the order of $4 million.

A couple of strategies were talked about that could enable the new club to take on the liability including selling off some golf course property for additional single-family homes and changing the refund policy to 3 for 1.

BBG represented that there were at least 2 buyers offering to pay more cash and assume the liabilities from BBG for member deposits.

All I can say at this point is...stay tuned. This is not a matter of if a sale takes place but rather when and how much.