Talisker default anticipated
March 27, 2015
A group of firms under the Talisker corporate umbrella anticipate defaulting on loans attached to a series of properties in Park City, Summit County and Wasatch County, according to the minutes of a Tuesday court hearing.
The minutes show an attorney representing Wells Fargo told 3rd District Court Judge Todd Shaughnessy the Talisker-related firms will not answer the lawsuit "and will be going into default."
The judge also appointed a receiver in the case, a step the Wells Fargo side requested. The minutes show the Talisker side did not oppose the appointment "but they do object to the form of the order." The form was modified based on Talisker’s comments, the Wells Fargo side said.
A receiver in a case like the one brought by Wells Fargo will manage the finances and prepare the properties for sale. The Wells Fargo side had said in an earlier court filing a foreclosure is "imminent."
Cynthia Nelson, who has worked in a variety of real estate positions over a career that tops 30 years, was appointed the receiver. In earlier court filings, the Wells Fargo side said Nelson advised Promontory on financial matters during that Summit County development’s bankruptcy.
Nelson has powers like taking possession of records, crafting a budget and retaining professionals in property management and financial matters. She also has the power to collect rent and serve as a landlord. The first budget is scheduled to be submitted within two weeks of the appointment and then on a monthly basis.
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The order appointing Nelson sets her compensation at $950 per hour with a cap of $85,000 during the first month of work and $35,000 per month afterward.
The Wells Fargo side has said the appointment of a receiver was an important step, indicating in court filings that the operations of the Talisker Club are imperative.
Wells Fargo in February filed the lawsuit seeking to foreclose on $163.8 million worth of loans and accrued interest. The loans date to the fall of 2010. Wells Fargo and the Bank of Scotland agreed to provide the loans. A firm called Midtown Acquisitions, L.P. later acquired the Bank of Scotland’s interest in the loans. Wells Fargo serves as the administrative agent for both of the lenders.
The real estate collateral attached to the loans includes lots in Tuhaye, lots in the Empire Pass subdivision of Red Cloud and undeveloped land in Summit County and Wasatch County, Wells Fargo has said. The collateral does not include property underlying any of the three Park City-area mountain resorts, according to the bank.
Court records, meanwhile, show that one of the firms under the Talisker corporate umbrella, called Talisker Land Holdings, LLC, was dismissed from the case. Talisker Land Holdings, LLC is notable as the business entity involved in a high-profile lawsuit against the former owners of Park City Mountain Resort that ended in the sale of the resort to a third party, Colorado-based Vail Resorts. The Wells Fargo side said Talisker Land Holdings, LLC was not a party to the loans, leading to the dismissal.