The shareholders of Trafalgar Golf & Country Club Limited have entered into an agreement to sell their shares to Anatolia Capital Corp. It is anticipated that this transaction will be completed in December.
Trafalgar Golf & Country Club Limited is the owner of the golf club property. It leases that property to Trafalgar Golf & Country Club Limited Partnership, the operator of the golf club. Throughout the negotiations of the purchase agreement, the shareholders of TGCC contemplated that Anatolia would continue to lease the golf club property to the Limited Partnership after completion of the sale. However, as the purchase agreement was being finalized, the purchaser’s advisors determined that for tax reasons which had not been anticipated, it would not be possible to continue to lease the golf club property to the Limited Partnership. Accordingly, the purchaser required that the continued lease of the property to the Limited Partnership be dropped from the proposed transaction.
We understand that the purchaser would still like to have the property continue as an operating golf course after closing. Accordingly, we understand that the purchaser is hoping to find a third party operator to continue golfing operations on the property, although it is unclear at this time whether or not such an operator can be found and the nature of any operations that would be conducted by such an operator. To the extent that we are able to assist the purchaser in continuing golfing operations on the property, we will provide that assistance.
As a result, the Limited Partnership will not be able to continue the operation of Trafalgar Golf & Country Club beyond the end of this golfing season. Until very recently, we did not anticipate having to close the Club at the end of this season. As you are aware, the Club established an initiation refund policy a number of years ago. All Club members who are in good standing when golf operations cease this year will be entitled to an initiation refund in accordance with that policy. All monthly dues payments will cease with payments due in December 2018, whether you are a member who pays dues on a calendar year cycle or July-June cycle. Any member who is on a July-June cycle and who has prepaid his or her dues will receive a rebate for a prorated amount which reflects four months usage over a seven-month season. These refunds will be reflected on your December 2018 member account.
