Woodcrest filed for bankruptcy late last year after a dispute between existing and former members who had invested in the club, located on Muttontown Eastwoods Road. Court documents say they disagreed on whether to keep the club running or sell it off to pay debts, the largest of which is a $6.5-million mortgage.
The club’s assets – which include a 65,000-square-foot clubhouse with chandeliers and banquet halls, and locker rooms recently renovated for an estimated $3.2 million – outweigh its liabilities, court documents say.
When talks on an agreement to keep operating collapsed, club members voted to go to auction.
Auctioneer Richard B. Maltz said the golf club could be turned into as many as 25 high-end homes or a smaller number of estates. It could also be used as a facility for corporate retreats or catered events, he said.
“You could definitely use your imagination on what’s going to happen,” Maltz said.
The club’s attorney, Ken Silverman, said he couldn’t rule out that a buyer might choose to keep Woodcrest operating as a golf club.
Bidders will have to submit a $1-million deposit before the auction, which will be held at the club. Once a bankruptcy judge accepts the winning bid, the buyer will have 30 days to close the sale.
Silverman would not speculate on how much the property could fetch at auction, but said it has attracted interest.
Court documents say that after proceeds from the auction are used to pay existing creditors, remaining funds would be divided among equity members who were in good standing as of Oct. 1.