Exclusive Spanish Trail Country Club files for bankruptcy

The exclusive Spanish Trail Country Club, which has a 27-hole golf course, filed for Chapter 11 bankruptcy reorganization Wednesday in Las Vegas.

The filing by the club near Tropicana Avenue and Rainbow Boulevard appeared to be an initiative to block efforts by a lender to take over and eventually foreclose on the course after it allegedly defaulted on a loan.

Spanish Trail has three nine-hole courses designed by noted golf designer Robert Trent Jones Jr.

The business also has restaurant, bar and special events operation with catering for weddings, receptions and the like; along with tennis and swimming areas.

Wednesday’s initial bankruptcy filing by Spanish Trail Country Club Inc., 5050 Spanish Trail Lane, didn’t include detailed financial information.

It said its assets range from $1 million to $10 million, while liabilities are more than $10 million.

The initial list of creditors includes the Las Vegas Valley Water District, owed nearly $120,000, and the Spanish Trail homeowners association, owed nearly $62,000.

Spanish Trail Country Club was sued Aug. 2 in Clark County District Court by Hermitage Management LLC, which says it holds a note the golf course business has defaulted on.

In an updated filing Aug. 18, Hermitage said it was owed more than $16.1 million and that it had initiated foreclosure proceedings against Spanish Trail Country Club.

In that filing, Hermitage asked the court to appoint a receiver to run the business in the meantime. Spanish Trail Country Club attorneys have not yet answered the lawsuit and the court hasn’t acted on the receiver request, which the bankruptcy likely will delay indefinitely.

The proposed receiver is Touchstone Golf of Berkeley, Calif.

The Spanish Trail membership list over the years has included some of the best-known business executives in Las Vegas including Bill Paulos, Jeffrey Shaw, Larry Ruvo and Mary Kaye Cashman – all of whom are listed as creditors with prepaid dues in Wednesday’s filing.

Other members over the years from the fields of business, law and entertainment, court records show, have included Mike Ensign, members of the Fertitta family, Michael Gaughan, Robert Goulet, the late former Gov. Kenny Guinn, George and Gavin Maloof, John Mowbray, Phillip and Maureen Peckman, Smokey Robinson, Chuck and Donna Ruthe, Frank Schreck, Fred Smith, Jack Sommer, Tito Tiberti, Mark Tratos and William Urga, to name just a few.

On Thursday, a spokesman said the loan the club defaulted on was taken out in April 2007 for $15 million, with plans to use the money to improve the golf course and renovate the clubhouse.

At the time, the club had about 700 members and plans were put in place to raise their dues about 10 percent a year to the current level of about $1,000 per month.

However, membership has declined to about 400 because of the higher dues and the troubled Southern Nevada economy, spokesman Steve Stern said.

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