You may have heard that Wells Fargo has initiated bankruptcy proceeding against Talisker and its affiliated entities in the Park City area. If not, please see this article from the Park Record this past weekend. I think that this bankruptcy will lead to a brighter future for developments under the Talisker umbrella and for the Talisker Club itself.
The Talisker Club is part of the asset mix subject to the bankruptcy; however, it is almost entirely supported, on a monthly basis, by the dues of the members. It is also the glue that holds the real property assets together, thus whether the bankruptcy is avoided through Talisker selling all, or a part of its real estate assets, or it is concluded via an auction sale or a negotiated deal between the creditors and a worthy buyer, the Club will remain intact and operable at its current level.
Further, no matter the ownership (a recreated Talisker entity or a new player), the club and the assets around it will have a lower debt structure in a few months as both Wells Fargo and the Private Equity group that co-own the debt have written it down significantly on their books or through their purchase of the original debt. Therefore, they will likely take a substantial discount on the current $160m balance. This will put the new ownership in a much more palatable financial position and allow them to re-invest in marketing and infrastructure to bring up absorption and asset valuations.
While the bankruptcy action currently adds confusion to the marketplace, which will be negative in the short term, once the action concludes I believe there will be a significant upswing within Talisker developments. The underlying assets (Empire Pass and Tuhaye) are the creme de la creme in their respective environments, and the club has no equal. Once the finances are straightened out there should be no further hurdle to their success.