A massive project in Texas could be halted forever if their bid for Chapter 11 bankruptcy is denied. The owner of the Skywater Over Horseshoe Bay development hopes to avoid being shut down by presenting a reorganization plan that could save the development and even complete it by the scheduled date.

The project covers 1,618 acres on Texas 71 and would include an 18-hole Jack Nicklaus signature golf course.

In their bankruptcy petition the owners listed assets between $50 million and $100 million with debts between $10 million and $50 million. This isn't the first time this project has seen bankruptcy, however, as the original owners, HB Texas Funding Inc., were forced to step away from it in February of 2009. It was then snatched up by SW Ownership LLC a few months later that quickly pumped $10 million in to re-launch the project. They worked up plans to build 1,200 homes, villas and condominiums on the property, as well as offer commercial parcels. The project is slated to be finished by 2015.

However, when the recession hit in 2005 sales of high-end lots dropped dramatically. At this time only 96 lots have been sold with just four homes built. According to project manager Thad Rutherford, the lots range in price from the $100,000s to $350,000.

Although bankruptcy seems like a last-ditch effort, it is actually a smart fiscal move for those who are struggling. To learn more, contact us to speak with a Houston bankruptcy lawyer.