New Beginning: Dan & Michelle Breslin Settle With Travelsteads at Red Hawk
</element><element id="paragraph-1" type="body"><![CDATA[A three-year shareholders' fight ended with a closing last Thursday on Dan and Michelle Breslin's purchase of Dixie Travelsteads' half interest in the Red Hawk golf course. The purchase price was not disclosed.
The closing came over 11 months after an announced settlement last June. Michelle Breslin told the Du Quoin Evening Call Monday it has taken almost a year to put a Small Business Administration loan in place to effect the purchase. The Breslins thought they had approval of financing last October, but said the SBA required supplemental filings over the winter months before approving the loan.
At the core of the dispute was a 50-50 partnership between the two families and a $625,000 loan made by Murphy-Wall State Bank & Trust Co. to a trust called Double Eagle, Inc formed by the two families. It was a vehicle to fund the Breslins' purchase of the golf course. The golf course property and other guarantees from the Travelsteads secured the loan.
The court's findings show that the Breslins agreed to buy one-half interest in the golf club for $775,000, pay $150,000 down and borrow $625,000. The loan was to be repaid by Dan Breslin's $40,000 stipend as Director of Golf plus his 25 percent profits from the course. The profits weren't enough to fulfill the obligation which triggered issues as to who had access to the club's bank account and whether some of the club's revenue was diverted to private use.
The Breslins filed a lawsuit alleging their managerial rights and sought injunctive relief to take the Travelsteads off the club's account.
A courter lawsuit filed by Dixie Travelstead alleged the Breslins were using money in the joint trust to pay off the loan instead of paying it off with personal funds.The court in January 2011 found that was the case.
Dixie Travelstead also alleged the Breslins had opened a second Double Eagle, Inc. checking account which denied Travelstead as shareholder access to the club's funds and accounting. A January 24, 2011 ruling restored Dixie Travelstead's name to all accounts and made a demand that the loan be retired from private funds.
As allegations waned the goal became simple: to effect the Breslins' purchase of the Travelstead shares. The Breslins dropped their lawsuit against the Travelsteads and the Travelsteads abandoned their counter lawsuit.
The newspaper talked to both families on Monday and both agree the goal now is to make the historic golf course--established in 1929 as the Elks Country Club--a success. It is an important resource to all of Perry County. Volunteers are donating their time to the grounds and cart paths. There's a lot of work on a tight budget.
The club has a full schedule of events. The restaurant is open and will be successful. "The restaurant is running great and we have had play on the course since January," Michelle Breslin said.
And, the course has a full schedule of youth golf workshops, charity scrambles and tournaments. Membership recruitment plans will be announced in the coming days.