HONOLULU, Hawaii (HawaiiNewsNow) - The Chinese developer who acquired the Makaha Valley Country Club and hundreds of acres in the valley nine years ago has filed for bankruptcy protection.
Pacific Links US Holdings and its affiliated companies filed for Chapter 11 reorganization on Feb. 1, listing debts of $50 million to $100 million.
The reorganization will allow the company to keep its doors open while it restructures. While it won’t halt the project, real estate experts said the bankruptcy could stall it.
“The project is going to have a little delay but it certainly can come out better than before and sooner rather than later,” said real estate expert Ricky Cassiday.
The Makaha Valley Country Club and related business employs about 15 people. Most will likely be retained during the bankruptcy.
Pacific Links has said it planned to build new homes, a hotel and timeshares, and a new golf course designed by Tiger Woods.
Experts said the property remains attractive because it’s zoned for single-family homes, whose prices have continued to rise during the pandemic.
During the current downturn, many of the more financial stable Chinese developers will likely survive but those struggling even before the pandemic face hard times.
Billions of dollars worth of Chinese developments have been put on hold in Hawaii during the past year. Construction of the nearby Atlantis Resort at Ko Olina is also stalled.
Several, including the Hawaii City Plaza condo project near Kapiolani Boulevard has been help up several years by lawsuits, opposition from the City Council and by restrictions on overseas investments on Chinese buyers.
Some believe another developer may have to step in.
“The money behind them can shift around and someone else can easily come in at a lower price and do a better job,” Cassiday said.