Circuit Court Judge Daniel Heely on Monday ruled in favor of lender Long Term Credit Bank of Japan Ltd.'s request in its foreclosure suit to sell the 1,300 acre property, said Andy Beaman, Long Term's local attorney.
The judge also appointed Joseph Toy as commissioner of sale. Toy is director of hospitality consulting at Coopers & Lybrand LLP and was commissioner of the recent sale of the Alana Waikiki Hotel.
Beaman said the date of the auction has not yet been set and the court is in the process of appointing a receiver to oversee the property.
The developer, Minami Group USA, completed the golf course and its clubhouse in 1991. Minami, headed by Japanese electronics magnate Masao Nangaku, acquired the raw land to the course back in June 1987 from Iolani School for $9.9 million.
Nick Dreher, attorney for Minami, said the judgement comes as Minami was attempting to sell the property to a local company, Awakuni Group Inc., for an undisclosed price. Both Dreher and Beaman said the action should have no effect on daily operations of the golf course, which is located mostly on conservation land near the Pali Highway.
In its November 1994 foreclosure suit, Long Term said that Minami owed the bank some $40 million when it developed the golf course, Beaman said. The company owed additional debts to a Japanese construction company, Hazama Corp., said Deher.
The decision is the latest setback suffered by the golf course and its developer. In June, 1995, the City and County of Honolulu was prepared to sell part of the golf course after Minami ran up a delinquent tax bill of about $1.6 million. Minami has since reduced its tax bill and the city later agreed to take the property of the auction list.
Minami previously owned the Manoa Marketplace but sold it for a loss in 1992.
Back in 1987, Minami purchased the landmark Dunes Hotel in Las Vegas in an auction for $157.7 million. But the company later sold the property to Steve Wynn's Mirage Resorts Inc. for about half the purchase price.
Mirage later razed the property to make way for another casino.