ORILLIA – The money-troubled Couchiching Golf and Country Club is turning to its shareholders to tackle the mounting debt that threatens the existence of the long-running operation.
“To be frank, if the club cannot be profitable, the board will have few alternatives but to sell the property,” the board of directors said in a Dec. 22 letter to shareholders.
The club hopes to secure $130,000 or more in loans from individuals or companies willing to invest in the struggling operation, according to a proposal included in the letter.
Investors would receive a note secured by a second mortgage on the property, and the funds would be put toward the club’s sizable debt.
“This would not affect the value of your common shares, as we are replacing debt, not adding to it,” the board said.
The club owes more than a half-million dollars and requires an injection of cash to keep it operational until the spring when the course reopens.
Adding to the sense of urgency is a demand from the bank that the club trim its debt to $450,000.
At a special meeting on Jan. 27 shareholders will be asked to approve a resolution allowing the board to hike the club’s borrowing limit to $600,000.
Doing so would allow the board leeway to renegotiate with the bank, investigate other avenues for financing and raise capital through potential investors, it said.
“A ‘No’ vote to the resolution will result in the bank taking control and disposing of the assets on their terms,” it said.
Shareholder Len Cotton described the bluntly worded letter as “a scare tactic.
“That’s all it is,” Cotton told Orillia Today.
The local man has recommended the club either sell the neighbourhood property or invite the city to manage and upgrade the course, saying it is in dire need of a redesign.
“I don’t think there is any alternative,” he said. “I don’t think anybody has the stupidity to put up the money to save it. If it was operated property, it could make (the city) a little money and keep them with a green patch in the middle of town.”
Were the bank to take control of the operation and put it on the market, the board fears that, without a rezoning, the property’s appraised value would be much lower than it would be for lands zoned residential.
“If control is given to the bank, you can expect that the bank will take the steps necessary to satisfy their debt with no regard to the shareholders’ investment,” it added.
The board is seeking loans of $10,000 or more, but would “welcome loans for as little as $1,000.”
The board also intends to explore potential long-term solutions proposed by shareholders at earlier meetings, “including, if necessary, selling the land and buildings under our timetable.”
A budget proposed for 2010 includes cuts to administrative costs and other expenses, as well as hikes to membership fees and food and drink prices.
Today's Weather 
6°C
6°C
The Couchiching Golf and Country Club hopes to secure $130,000 or more in loans from individuals or companies willing to invest in the struggling operation, according to a letter from the board of directors.
User Comments
Most Recent Stories
Skaters strong in North Bay
ORILLIA - Orillia Figure Skating Club competitive members Evelyn Telford-Gill, Hillary Sullivan, Gunnar Holmgren, Jayme Zwiers...
[more]
Calendar March 12
Oro-Medonte softball: Sign up now for the 2010 Oro-Medonte Minor Ball Association season. Divisions include t-ball, tyke, squirt...
[more]
