Bankruptcy Puts Wohali Golf-Course Development and Coalville at Crossroads

Developers of the large Wohali planned community near Coalville filed for bankruptcy on January 6, 2026, triggering a court-supervised sale aimed at repaying creditors. Lenders have reported claims of roughly $86 million and are urging a swift disposition of assets to recoup losses after the project missed payments and became embroiled in multiple lawsuits. Lot owners, contractors and segments of the community have resisted what they call a potential “fire sale,” arguing that a rushed sale would destroy the project’s value and leave unfinished infrastructure and legal disputes in its wake.

The Wohali development, controversial from its inception because of its scale and the plan to allow nightly-rental units, stalled as financing faltered. Missed payments prompted litigation by lenders and counterclaims from lot owners and contractors over unpaid bills and construction defects. With the bankruptcy filing, the dispute shifts to the bankruptcy court, which will weigh competing claims and determine whether a quick auction or a negotiated restructuring best serves creditors and the local community.

For residents of Coalville and Summit County, the outcome has immediate fiscal and social implications. A rapid sale to a new owner could bring quick cash to lenders but may leave lots and amenities unfinished, depress nearby property values and complicate county efforts to manage infrastructure demand. Conversely, allowing time for a restructuring or controlled rehabilitation could preserve the project’s contribution to the local tax base and tourism economy, but would prolong uncertainty for lot owners and contractors seeking payment.

Political fallout in Coalville has already surfaced as neighbors and local officials debated growth, short-term rentals and community character. The project’s scale and the nightly-rental component had been major points of contention; the bankruptcy now raises questions about who will make decisions about land use, access, and regulatory enforcement if ownership changes. Summit County could face pressure to reassess permitting, road and utility obligations tied to the development if a new owner seeks revisions.

Beyond the immediate legal contest, Wohali’s troubles fit into broader regional trends: large resort-style developments facing financing stress in a higher-rate environment, and rising conflicts over the balance between residential housing and short-term rentals. The bankruptcy hearing will determine whether the project is liquidated quickly to satisfy the roughly $86 million in lender claims or whether stakeholders secure breathing room to restructure and complete the community. For Coalville, the decision will influence the town’s fiscal outlook, housing dynamics and local politics for years to come.