Porters Neck Country Club files for bankruptcy protection

NEW HANOVER COUNTY, NC (Press Release) — Thursday, Porters Neck Country Club filed for Chapter 11 Bankruptcy Protection in the United States Bankruptcy Court. This was a difficult decision for the Club’s Board of Trustees. The Board decided to file Chapter 11 to ensure the continued operation of the Club.

Board Chair David Adams commented, “There were several factors precipitating this decision. After overcoming significant impacts from Hurricane Florence, we experienced more damage from Hurricane Dorian than most of Wilmington, due to tornadoes in our area.  Additionally, we have been in a lawsuit and disputes over ponds around the Club, lawsuits over insurance coverage and remediation, and a lawsuit with our developer.  These all have carried costs for the Club.”

Adams continued, “The lawsuit with the Club’s developer arises out of the structure the developer put in place for the sale of Club memberships that, ultimately, underfunds Club operations.  We also have an ongoing dispute with our insurance carrier regarding their retention of the law firm of Gordon Rees Scully Mansukhani out of Raleigh, who caused the Club to be sanctioned in the case against the developer, making it almost impossible for us to restructure the Club in any other reasonable fashion.  After three unsuccessful mediations and other informal settlement efforts, I can say that our Board tried everything to avoid this path.  We think this restructuring will allow us to emerge stronger as a Club and as a community.”

The Club will continue to operate under the Bankruptcy Court’s protection. Members were notified today, and at this time, the Club does not anticipate any service disruptions or changes in the quality of Club facilities, staffing, or programming.  Porters Neck Country Club is “open for business” and continuing under management by McConnell Golf.  The club is booking future social and corporate events.