An Angus golf resort faces another two years of uncertainty after the latest development in an ownership dispute.
Members of Letham Grange Golf Club (LGGC), who are running both courses at Letham Grange near Arbroath, met representatives from the liquidators of Letham Grange Development Company (LGDC) for two hours of talks on the future of the site.
Peter Ford and Neil Rimmer of LGDC informed club captain Nick Jackson that an appeal had been lodged against a court decision, which found in favour of the former resort owner Taiwanese businessman Peter Liu.
The ruling at the Court of Session in April found that Mr Liu’s investment in Letham Grange meant that he is owed money from any asset transfer.
The appeal process is likely to take between 18 months and two years to resolve, adding to a saga that has already dragged on since 2001.
Mr Ford explained that running the hotel building at the resort had proved costly, adding that the likes of heating, rates, maintenance and the significant investment made in the courses had offered little return.
While the liquidators have made it clear there is no appetite to invest any more money in the upkeep of the hotel, they confirmed they were happy to see the club was looking after the courses and that golf had been thriving since members took the reins in April.
Mr Jackson said: “Peter and Neil asked how we were running the club and we explained about the fees, golf desk, visitors, buggies, refreshments, resident support etc. They seemed impressed and surprised at our enterprise and stunned to hear that the membership now exceeded 500.
“We asked about an extension of our licence to operate the golf courses for a further two years, given the likely timeframe for the appeal.
“Peter said he was sure that it would not be a problem, although we might have to have a tighter legal agreement going forward than the one we have now.”
LGGC took over the running of the courses after the management firm running them on behalf of the liquidators pulled the plug last December, laying off all staff.
The club now has full access to all of the green-keeping equipment, and the four-wheel-drive jeep, and will be permitted to ‘trade’ some course maintenance gear when needed.
Both Mr Ford and Mr Rimmer told members they wanted to see the golf courses stay open.
Mr Jackson said: “We have now commenced negotiations with the respective legal teams to secure an extension to our licence to operate the golf courses, initially for a further two years.
“The message for now however is keep going, keep growing and enjoy the golf.”
In 2001, Mr Liu, who then owned LGDC, sold the firm’s hotel to another of his companies, Nova Scotia Ltd (NSL). LGDC was liquidated and the liquidator entered into a lengthy legal pursuit of NSL, claiming the sale had not been within the law.
LGGC is not affiliated with any of the firms, but entered into a contract with the liquidators to run both The Old and The Glens courses and offer limited clubhouse facilities.