Wohali Land Estates files for Chapter 11 bankruptcy amid mounting debts

Wohali Land Estates, LLC, filed Aug. 8 to the U.S. Bankruptcy Court in Salt Lake City. Photo: Wohali-scaled-1

COALVILLE, Utah — Wohali Land Estates, LLC, the developer behind the ambitious Wohali golf course and luxury home project in Coalville, has filed for Chapter 11 bankruptcy protection in the U.S. District Court for Utah, citing millions of dollars in liabilities and multiple pending lawsuits.

The filing, submitted August 8, lists more than $4 million in unsecured claims, including disputed debts tied to Wohali Builders LLC, the developer’s affiliated construction arm. The largest unsecured claim comes from Rare Earth Hardwoods, at $567,204, for alleged trade debts of Wohali Builders. Other creditors include Eave Partners ($489,492, pending lawsuit), Allied Mechanical ($446,113), and Sunbelt Rentals ($270,221). Lawyer Wade Budge is cited as being owed $220,000. Many of the claims are marked as “contingent, unliquidated, and disputed,” indicating they may be subject to litigation or negotiation.

Wohali’s filing comes after years of controversy and delays surrounding its planned 1,500-acre luxury golf course community. First approved in 2019 after a contentious rezoning process, the project envisioned two 18-hole golf courses, a clubhouse, and hundreds of high-end residences. While developers later scaled back certain elements, the project remained a flashpoint in Coalville politics, with critics raising concerns over water use, environmental impacts, and the project’s long-term viability.

According to court records, Wohali Land Estates is seeking bankruptcy protection to restructure its debts while maintaining operations. Chapter 11 allows companies to continue business while negotiating repayment terms with creditors.

The filing also underscores the financial strain from ongoing legal battles. One pending breach-of-contract lawsuit from ICM Solutions claims $74,736, while other creditors, including construction suppliers and professional service providers, allege nonpayment for work and materials.

Since May 2025, the owners of the Coalville-area development have faced four lawsuits from creditors and contractors, including a case brought by foreign investors who allege they are owed $85 million. The lawsuits allege the 5,000-acre golf resort community has stopped paying its bills, has largely halted construction and that they have laid off workers.

The $85 million lawsuit from foreign investors say Wohali Land Estates LLC defaulted on a loan issued through the federal EB-5 Immigrant Investor Program. They claim payments stopped in October 2024 and allege aerial photos show construction has ceased, with only a small crew left to maintain the golf course.

Wohali has yet to respond to any of the cases. The development has also been mired in an unrelated legal dispute between two founding partners, with a hearing set for November.

The case is now before the U.S. Bankruptcy Court for the District of Utah. No hearing date has yet been set for initial proceedings.