Debt forces Reynolds to sell assets

Reynolds Plantation, located in Greene County, is selling off assets to extend its future line of credit and to paydown $45 million of debt to the banks that lend to Linger Longer Development Co.

In a letter that was sent out to residents of the communities Chairman Mercer Reynolds wrote,

“Historically, acquiring land in the Lake Oconee area to ensure that Reynolds Plantation continued to grow has been a reliable business strategy. However, with this downturn, we found ourselves in the position of having acquired more real estate, and debt, for Reynolds Plantation than is supported by recent demand.”

This downturn has resulted in the need to sell assets and amenities at the Plantation.

On the chopping block are the Plantation’s assets and amenities, which include: golf courses, clubhouses, maintenance facilities, marina facilities, the Lake Club, the Jackson House, the Nature & Heritage Center, Administration Building, Central Services Building and furniture, fixtures and equipment related to such facilities.

The cost of construction for these amenities was totaled at approximately $136 million.

The purchaser of these assets is still undecided. In the letter that was distributed, Reynolds lists three options for the sale.“Given the significance of this decision, we have spent a considerable amount of time evaluating a number of purchasers; these include: The Property Owners Association, an independent third party, which has made an offer, and a smaller group of property owners.”

Despite the buyer, homeowners have been assured that their quality of service will not be endangered due to the upcoming sale.

Reynolds Plantation has been the employer to many Georgia College students in the past.

Students at Georgia College who are employed at Reynolds take solace in an official statement from CEO of Reynolds Cos. Dan Dupree.

“Linger Longer Development Company is in the final stages of a multi-year negotiation to restructure the debt for Reynolds Plantation and its associated properties, not for short-term needs, but for long-term stability. Linger Longer has always been financially sound and upon completion of this negotiation, will be even stronger. We are confident that this will be a positive step for our members, employees and the company as a whole because we are all invested in the same future. Our decisions will be based on what best preserves property values, lifestyle, environment, and the character of Reynolds Plantation and its associated communities,” Dupree said.

It is not anticipated that the sale of the assets will cause any employee shifts within Reynolds Plantation.

Georgia College senior golfer Billy Shida, who has played on Reynolds Plantation golf courses, is not overly concerned about the sale as long as the golf course remains available.

“But just because they sell Reynolds doesn’t mean that the courses are going to vanish. I can’t say I’m disappointed because the golf course is still the golf course. I’ve always enjoyed playing a Reynolds course because of the name and prestige it carries, but ultimately, unless they plan to turn it into residential or commercial real estate, I don’t speculate it being much of a change other than at the top,” Shida said.

Posted by Bobbi Otis on Feb 10 2011. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.