Golf Resort Linked To Tiger's Apology Files For Bankruptcy, Goldman Implicated (No, Seriously)

Tyler Durden's picture

It's official - Goldman Sachs is the new American Idol. The firm has taken over American public interest and its airwaves (both metaphorically and soon, if Canada is any example, literally... we jest - it is well known that Goldman has very little control over CanWest programming) - after serving as ground zero for the financial system bailout, after facilitating the fudging of EU entrants' books over the past decade, after going after iconic soccer clubs, and after actually rebranding marine wildlife, the firm is now implicated as the key lender, and, after pulling liquidity at the last moment, soon to be owner, of the Sawgrass Marriott Gold Resort & Spa, which has just filed for bankruptcy. The resort, which is home to the associated TPC Sawgrass golf course (which has not filed for chapter 11, at least not yet, and also happens to be the headquarters of the PGA Tour), is where Tiger Woods decided to apologize on February 19 for having sex with "those women." We are positive that the latest reality series to come out of Hollywood brain trust "Who wants to marry a Goldmanaire" is just months away. 

More from Bloomberg:

The course is known for its iconic 17th hole. Architect
Peter Dye, a member of the World Golf Hall of Fame, placed the
green on an island in a small lake. It has since become a magnet
for pro and weekend golfers, who hit some 120,000 balls each
year into the surrounding water.

The course was ranked ninth on Golf Digest’s list of
America’s 100 Greatest Public Courses for 2009-2010.

RQB Resort is the owner of the hotel and cabana club. RQB
Development is the owner of the golf villas, the spa and related
development rights.

“The current economic recession and associated disruption
in the debt and equity capital markets have been extremely
challenging for the debtors,” RQB said in court papers.

And here is the Goldman connection, which these days seems to be everywhere:

In July 2006, Goldman Sachs Commercial Mortgage Capital LP
helped finance the $220.5 million purchase of the 65-acre resort
in Ponte Vedra Beach by RBQ Resort and RBQ Development.

The new owners spent $30 million upgrading the resort,
according to court filings. Sales rose 10 percent in the first
full year. Then the economic decline reduced the number of
conferences, which account for 65 percent of sales. The resort’s
revenue for 2009 was $42.6 million down from $56.7 million the
previous year, according to court papers.

In the third quarter of 2008, the owners announced a plan
to cut costs by $4.5 million. Sales fell 25 percent in 2009,
“resulting in a lack of liquidity for the resort and the
inability of the debtors to pay,” the company said in court

Goldman, which is owed about $192.5 million as of Jan. 10,
hasn’t been paid since August. RBQ met Goldman last March and
told the bankers then that they might have “liquidity issues”
by August.

In June, the owners hired Perella Weinberg Partners LP to
broker a solution with Goldman. In October, Goldman told the
owners it wanted to foreclose.

Some more from the actual Chapter 11 filing (attached below) discussing the relationship between Sawgrass and lender Goldman, whereby it turns out the squid led the soon to be banrkrupt course along, only to screw it over in the 11th hour.

The Debtors have been open and transparent with Goldman Sachs since the Loan Agreement was executed. As part of a proactive approach, the Debtors entered into discussions with the Goldman Sachs to restructure the loan with a meeting in New York on March 16th 2009. The Debtors informed Goldman Sachs that with the economic outlook at the time and the trends in business bookings the Debtors would have liquidity issues by July/August 2009. The Debtors and Goldman Sachs discussed stabilizing the loan with an extension of the payout term by 3 to 4 years and a reduced interest rate to allow the loan to be serviced by the Resort’s operating cash flow. In reliance on Goldman Sachs’ apparent willingness to restructure the loan, the Debtors did not seek alternative financing. The Debtors were compliant with their loan obligations at the time ofthe first restructuring meeting with Goldman Sachs on March 16, 2009 and continued to be compliant until August 2009.

In order to facilitate these discussions, the Debtors asked Perella Weinberg Partners (“PWP”), a leading New York restructuring bank, to assist in the negotiations in late June. Over the course of almost three months of Goldman Sachs negotiation and over twenty turns of a very detailed four page agreement, the Debtors believed that PWP had reached agreement with Goldman Sachs on a restructuring with the exception of an intercreditor issue comprising $2 million of an unsecured swap claim. This term sheet involved no write down in the par value of Goldman Sachs’ outstanding debt, and provided Goldman Sachs with 30% of the equity of the Debtors.

In October, Goldman Sachs informed the Debtors that it instead intended to foreclose on the Resort. When asked in early  November why the restructuring was no longer an alternative, Goldman Sachs stated that its management had changed its mind and preferred to own the Resort. At this meeting the Debtors asked Goldman Sachs for an additional four months to find an alternative capital solution, which Goldman Sachs was prepared to give only in the event the Debtor gave up their rights to file Chapter 11, among other restrictions. At the time, Goldman Sachs told the Debtors that the only other solution would be the introduction of equity in the form of cash to the transaction but that they did not believe that the Debtors were capable of raising additional equity.

Congratulations Goldman, you are now the proud owner of yet another sporting trophy, which ironically was in the same boat as you, needing liquidity, and yet you decided to screw it over. Please remember this next time you come begging at the taxpayer trough. We hope golf players in the South are a little more accommodative and do not mind playing at the course, which will soon need to dig a deep moat around its circumference to protect it from the morts, who will likely not be at all happy that Goldman is the now in charge. Below is an artist's rendering of the type of creatures that will be introduced in the moat.

Full bankruptcy filing (attached).


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Mongo's picture

LOL, the "no, seriously" remark just cracks me up!

WaterWings's picture

And on a serious note:

Chris Hedges: Zero Point of Systemic Collapse

If we build self-contained structures, ones that do as little harm as possible to the environment, we can weather the coming collapse. This task will be accomplished through the existence of small, physical enclaves that have access to sustainable agriculture, are able to sever themselves as much as possible from commercial culture and can be largely self-sufficient. These communities will have to build walls against electronic propaganda and fear that will be pumped out over the airwaves. Canada will probably be a more hospitable place to do this than the United States, given America’s strong undercurrent of violence. But in any country, those who survive will need isolated areas of land as well as distance from urban areas, which will see the food deserts in the inner cities, as well as savage violence, leach out across the urban landscape as produce and goods become prohibitively expensive and state repression becomes harsher and harsher.

Hulk's picture

Excellent article WaterWings. Thanks
Originally, it was the magical thinking we observed that prompted us to start preparing a
retreat. Folks are assumming that a technolgical miracle will save us from peak oil, not realizing the magnitude of the problem. (For instance, I did a quick calc today on how many 1 GW Nuc plants it would take to replace gas consumption in Ca alone.
(assuming replacement by Electric vehicles
Natural gas powered vehicles would be a better choice)
The answer is 75 1GW plants. Ca uses 20 Billion gallons of gas and diesel a year, which is more than China uses!)

As one of us served in Bosnia, we are well
aware of the seriousness of that situation.
Folks should study Bosnia
closely to fully understand just how bad things can get in a urban/semi country setting
Well worth the time to study Bosnia

We very quickly developed community with the local farmers and hunters even though we were
not native to the area. Being Marines helped
facilitate this quickness, as many of the locals turned out to be vets. One local Vietnam vet even proudly demonstrated to us
how to clear one of our jammed M1A's, by throwing it on the ground and stomping on it
(to our horror!) Worked though!
Interesting how the modern day "survivalist"
is just the opposite to the 1980's style
Ruby Ridge type

I highly recommend that anyone here at zh who can afford land go out and buy some acreage
Consider a caretaker until you can "make it out there" yourself

I think the author of that article is spot on

Long Land
Long Au (original purpose for Au was to pay taxes)
Long training (FrontSight is an excellent choice for those who need weapons training.
Many other excellent choices too)

WaterWings's picture

Awesome. Loved your response.

One local Vietnam vet even proudly demonstrated to us how to clear one of our jammed M1A's, by throwing it on the ground and stomping on it (to our horror!) Worked though!


Cognitive Dissonance's picture

" where Tiger Woods decided to apologize on February 19 for having sex with "those women."

For once, I would like to hear "those women" apologize for have sex with "that man" which in this case means Tiger Woods.

I would love to hear some woman say on TV "I have no idea what came over me, why I would even consider having sex with "that man". I woke up and nearly had to chew my arm off to get away. Ewwww!! 

Mr Lennon Hendrix's picture

GS has the midas touch, as LAWrry Summers has as well.  GS stock to zero to commence in 3.....2......1........

lsbumblebee's picture

I'm looking forward to the inaugural Giant Vampire Squid Open.

faustian bargain's picture

brings new meaning to the term 'moral hazard'.

lsbumblebee's picture

I keep picturing Blankfein as "Goldfinger", kicking his Schlesinger 4 out of the rough.

geopol's picture

I think odd job had a hole in his pocket, or a pocket in his sock...

lsbumblebee's picture

You're right, but I'm rewriting to give it a touch of realism.

geopol's picture

It does remind me of,

Judge Elihu Smails

Mr Creosote's picture

You'll get nothing and like it.

Anonymous's picture

u can almost bet, while it was current and during negotiations, gs sold some swap hedge or whatever, and now they want it cause it's a winning trade, roflmao

Rollerball's picture

Par for the course at the AIG invitational.

swmnguy's picture

With what everyone has learned over the past couple of years, does anyone do any kind of deal at all with Goldman Sachs anymore?  If so, why?  What are they thinking?  What do they expect to happen?

Honest to goodness, it's like if a guy in hockey mask with a chain saw knocks on your door at night (not on Halloween, either), are you going to open it up and see what he wants?

Anonymous's picture

I used to work for a major issuer who was very innovative (yes, yes I know that's now a bad word) in how we structured our financing trades.

We would specifically avoid GS because we knew (as did everyone else on the street), that GS was good at stealing your IP and using its rolodex to sell it to everyone else. So next time someone tells you that GS is the most innovative house on the street, try to think of all the "poor" bankers that got screwed by GS's willingness to rip crap off and shove it down their clients throats. BTW, GS took one of my ideas and sold it to one of our competitors. Too bad they missed something big in the structure that wasn't disclosed in the OC. That company is now out of business (its good to be on GS's rolodex isn't it... well at least for GS it is).

Long story short is that I hate to break it to you all but this sort of BS has been perpetrated by GS for years. Now that they are a near monopoly, its only gonna get worse.

Ruth's picture

Where Distinct Experiences Create Lasting Memories...

boy, they weren't kidding!

Gordon_Gekko's picture

Is there any financial deal on this planet that Goldman is NOT involved in? BTW, when are they planning to foreclose on the White House?

Frank Owen's picture

I don't believe in any religious prophecies but you tell me who this description matches:

The antichrist will seemingly provide for the needs of the people but deny the ultimate salvation.

...working all kinds of counterfeit miracles and signs, and doing all kinds of evil...

 Daniel 9:27 mentions an "abomination that causes desolations" setting itself up in a "wing" or a "pinnacle" of the temple.

The shoe kinda fits Goldman, no?? LOL

Anonymous's picture

They already own it, why foreclose on yourself....maybe to get a tax payer sponsored bailout!

jc125d's picture

That'sa big calamaro. Hungry.

Anonymous's picture

Amen !!

hedgeless_horseman's picture

What's next? Blankfein writes  Krona/NKE/GS 3-way swap for Tiger's ex-div (divorce)?

It is agreed that if the krona rises, Nordegren goes down, and NKE makes all Tiger payments in full, then GS shall receive all right, title, and interest to Nordegren in 3-way swap, etc, and so forth...

Anonymous's picture

You are SICK!
But that's really funny!
Except Blankfein receives all Nordegren benefits previously accruing to Mr. Woods.

spekulatn's picture

We are positive that the latest reality series to come out of Hollywood brain trust "Who wants to marry a Goldmanaire" is just months away.


Well done, T.D. 

Anonymous's picture

Obviously they have an overseas buyer already lined up.

Fritz's picture

The squid re-trades deals all the time...

but they do it very politely.


Raymond K Hassel's picture

live 5 miles away - that news came largely out of the blue as there was very little to no local talk of distress prior to today.

tip e. canoe's picture

followed by "Lifestyles of the Rich & Shameless" starring Laura Blankfiend.

Anonymous's picture

If I were running the PGA I would immediately announce the PGA is pulling all sanctioned golf tournaments at Sawgrass until GS works out a deal with the current owners.

Many Americans are about to declare Open Season on Goldman Sacks pricks.

merehuman's picture

And free condoms with every stroke or put


Cistercian's picture

 I like the where is my axe?

No More Bubbles's picture

Tiger's really got the touch.  I wonder if GS will end up owning him too.........

alexdg's picture

Reality beats fiction any day!

Careless Whisper's picture

Goldman will bankrupt you, take your real estate, then rent it back to you. Oldest trick in the book.

Anonymous's picture

I thought goldman was the vampire squid.

THE DORK OF CORK's picture

I guess we know how to direct a alien presence when they arrive.

When it asks to take him to our leader we can call out Lloyd to show him how this little planet of ours works - although it would have to be a very sophisticated creature - with CDOs SPVs CDSs etc it may find life on Earth a tad complicated for your average run of the mill alien.

callistenes's picture

Oh god cnbc has now ripped off the STUPID index from zerohedge.


faustian bargain's picture

jeez. that's rather blatant of them. release the hounds!

Anonymous's picture

CNBC's *Senior* News Editor looks like he's about 14 years old. LOL.

Anonymous's picture

F the wolves (and Im not talking TBTF'S)

Hundreds of wolves have been killed in Idaho and Montana since March 2009 because the Obama administration eliminated federal protections for these animals. Ashley Judd has recorded a new video urging folks like us to write president Obama and encourage him to restore these protections. I watched the video and took action, and I hope you will too. Just visit to help

Anonymous's picture

If the wolves were killing my livestock and pets I would shoot them as well. Before you buy into bullshit treehugger propaganda like this you should get both sides of the story.

BlackBeard's picture

Let's all sneak onto the course at nighttime and take a massive collective dump on it!

Anonymous's picture

The level of cynicism you guys have is just tremendous.

It touches a chord in my own little heart.

Hmm so this golf course is only like 20 minutes away from me.

I've never been there.

It looks just lovely.

I always liked the Marriot Courtyards in particular.

Lovely hotels.

But I'm still not sure how all this ties in with Disney Land

and what Goldman is going to do with that when they come to own it.


DaveyJones's picture

downhill lies and hole in none