The Cliffs Subsidiary files for Bankruptcy

South Carolina-based Cliffs Club and Hospitality Service Co. LLC, filed for Chapter 11 bankruptcy protection in Tuesday.

The company owns eight different housing developments in North and South Carolina built around golf courses designed by championship golfers Jack Nicklaus and Tom Fazio.

While the actual developments, called The Cliffs, are facing some financial troubles and owes back taxes on properties near Asheville, it is their subsidiary, Cliff Clubs, which maintains the golf courses, clubhouses and other amenities, that has filed for bankruptcy protection, according to the Asheville Citizen-Times. 

In their bankruptcy filing, Cliffs Clubs listed their liabilities between $100 and $500 million, as reported by the Wall Street Journal. Their actual assets are much lower at an estimated $1 million to $10 million.

Sales of the homes and land were affected by the economic downturn, prices fell and two of the golf courses, one designed by Tiger Woods, have not been completed.

The Cliffs board earlier this year reached a tentative deal with the Carlile Group, based in Marshall, Texas, to take over The Cliffs Club for an unspecified amount.

The housing market has suffered significantly since the economic downturn and ailing developers may find they need a bankruptcy attorney to help them restructure their business.

A business that wishes to return to profitability can seek the expert advice of a bankruptcy lawyer, who will determine how they can reduce or eliminate their debt. A bankruptcy attorney will know which structure is in line with the needs of the troubled business.