EB5AN leads the EB-5 industry in offering EB-5 investors high-quality, rural real estate development projects. Since EB-5 reforms were enacted in 2022, EB5AN has received a record-setting 25 Form I-956F project approvals. In that same period, over 700 EB5AN investors have received Form I-526E approval from U.S. Citizenship and Immigration Services (USCIS).
Our track record speaks for itself. EB5AN has consistently secured positive immigration and financial outcomes for investors.
EB5AN also stands out as an industry leader in transparency. We are committed to operating as an open book. As part of that commitment, we would like to share updates on one of our early rural EB-5 projects—a residential golf course community development in Coalville, Utah, called “Wohali.”
EB5AN’s Approach to Real Estate Investing
Before discussing Wohali specifically, we want to provide some brief context.
Investing is never without risk. For EB-5 investors in particular, risk is actually required by the EB-5 program. In real estate, market dynamics change over time. Since 2013, our team has seen several cycles of the U.S. real estate market. Each cycle puts unique external pressures on development projects.
Since its founding, EB5AN has structured projects with a deliberate focus on protecting investors. Our projects are designed to limit risks, helping make sure that investors obtain and keep their immigrant status and are repaid, even if projects face challenges. We are not naïve to the fact that downturns are a part of investing. As a result, our firm reviews projects from a “worst-case scenario” perspective. We assess how real estate projects would perform under adverse conditions, such as market volatility, economic slowdowns, and cash flow constraints. With the worst case in mind—as unlikely as that case may be—we are careful and proactive.
How EB5AN’s Approach Protects EB-5 Investors
Wohali is an example of why we are so careful to put key protections in place for EB-5 investors.
Sales in Wohali were slower than forecasted, which, by itself, is not necessarily a major issue. The developer, however, chose to spend its limited capital primarily on infrastructure and amenities ahead of sales. As EB5AN closely watched this situation, it became necessary for us to act. EB5AN is the manager of the EB-5 Fund that pooled EB-5 investments and made a loan to Wohali. The EB-5 Fund enforced its recorded senior mortgage to protect the interests of its EB-5 investors.
Fortunately, Wohali’s EB-5 investors are well positioned due to how EB5AN structured this project. This is why we plan for the worst and take a conservative financial approach.
Below, we outline how Wohali’s funding needs have changed over time. We then explain why the senior EB-5 loan with recorded mortgages remains in a strong position. Ultimately, we show how Wohali is an example of how proactive structuring protects EB-5 investors.
Key Takeaways
- The EB-5 loan holds a first-priority, fully secured, senior lien on Wohali’s real property.
- Multiple independent appraisals support a valuable project. One suggests a value in excess of the EB-5 loan; the other reflects a value below—but still near—the amount due under the EB-5 loan.
- A qualified economist has determined that the project has already created over 1,200 EB-5-eligible jobs. This level of job creation is enough for all of the EB-5 investors to obtain permanent Green Cards through Form I-829. The economic impact report that verifies job creation has already been completed.
- When the EB-5 Fund began to pursue its remedies under its senior EB-5 loan agreement (foreclosure), the developer put the project into Chapter 11 bankruptcy.
- The court approved the EB-5 Fund’s interim debtor-in-possession (DIP) financing. This DIP financing will help protect and stabilize Wohali during the bankruptcy process.
- The bankruptcy case is expected to be resolved in 2026 via a public sale, known as a “Section 363 sale.” The sale is expected to result in either the EB-5 loan being repaid in cash or the Wohali assets secured by the EB-5 loan being acquired by the EB-5 Fund through a credit bid. The bankruptcy case could also be resolved through a plan.
- The EB-5 Fund is working with expert attorneys to navigate the legal process and ensure an optimal outcome for EB-5 investors.
Wohali’s Progress
Wohali is a residential community in Utah centered around an 18-hole championship golf course in the Park City area. The project plans to develop and sell over 100 estate lots and over 300 townhouse-style village residences.
Wohali has made progress toward many of its goals. The senior EB-5 loan was used to fund the development of the project. The 18-hole golf course is complete, and an executive short course is partially finished. Work has also been done on infrastructure, amenities, and land lots. A number of luxury townhome-style residences are partially built.
Wohali has also realized sales and commanded strong prices. Nearly 30 estate lots have sold at an average price exceeding $1.0 million each. Several of the townhome-style village units are currently under contract, with prices ranging from $2.0 million to over $3.0 million. Although prices may be impressive, volume has not materialized as the developer expected.
Village Unit and Horizontal Construction Progress
Recent Flyover Images
The centerpiece of Wohali is its championship golf course. Known as the “Eagle Course,” the amenity was built to a standard very few private communities can match.
In September, after filing for bankruptcy, the course hosted the high-profile 2025 Wohali Classic, which brought over 10 Division I NCAA golf programs to the property. Local coverage made it clear that the course already serves as a true championship environment capable of hosting tournaments.
Independent reviews and golf publications have echoed that praise:
- Park City Utah Golf, which promotes high-end mountain golf destinations, called Wohali “an absolutely beautiful spot to enjoy some epic mountain golf.”
- Park City Investor, a regional real-estate site known for its coverage of communities centered around golf courses, reported that Wohali’s course opened “to rave reviews,” with “some avid golfers declaring it the best course in the nation.”
- Professional golf photographers have featured Wohali extensively. Brian Oar, a nationally recognized golf photographer whose portfolio includes Golf Digest, Golf Magazine, and major resort properties, has published multiple images of the course. His coverage highlights Wohali’s natural beauty and showcases the course as a visually elite property.
Completed Championship Golf Course, Manor House, and Starter House
Immigration Security
EB-5 investors in Wohali are already in a strong position from an immigration standpoint.
The project’s regional center has received Form I-956F approval, which means the details of the project have already been reviewed and approved by USCIS. Wohali has been fully compliant with the EB-5 program since day one.
Approximately 80 out of 99 EB-5 investors in Wohali have received individual Form I-526E approvals.
Furthermore, based on an updated economic analysis, over 1,200 EB-5-eligible jobs were created through March 31, 2025. To receive permanent Green Cards, EB-5 investors must create at least 10 qualifying jobs each as a result of their investments. With 99 investors, only 990 jobs need to be created. Wohali has, therefore, already created more than enough jobs for every EB-5 investor to meet the requirement.
Even though Wohali’s first Form I-829 petitions will not be filed for some time, EB5AN has already prepared the required documentation for the EB-5 Fund’s investors.
Michael B. Schoenfeld, EB5AN’s managing partner and co-founder, explains:
“One of our key goals with every project is to have all of the jobs created early on. That is always a best-case scenario. In many EB-5 projects on the market, EB-5 investors have to wait for years before they have fulfilled the job creation requirement. Such a long wait creates uncertainty as to whether the investors will qualify for permanent Green Cards. But our EB-5 investors in Wohali do not face this uncertainty because significant construction spending and job creation occurred early in the project’s timeline. Our investors can be confident of a successful I-829 submission.”
From an immigration standpoint, the Wohali project is already successful. The project has an approved Form I-956F, and nearly all EB-5 investors have approved Forms I-526E. When it is time for EB-5 investors to file their Forms I-829, a fully compliant I-829 template is ready, with more than enough jobs already documented for all EB-5 investors.
Wohali’s Challenges
While Wohali has benefited from its development progress and strong sales prices, the project is facing cash constraints. Many business challenges can affect a project like this, but EB5AN believes the specific issues for Wohali came from slow sales and the developer’s choice to prioritize spending primarily on infrastructure and amenities.
Many of Wohali’s estate lots sold to private buyers at high prices—over $1.0 million on average. Also, several village units went under contract at $2.0–$3.0 million. Despite strong prices, total sales remained far below expectations. This mix of lower-than-expected sales and high spending left the project with insufficient liquidity.
Prior to running out of money, the developer failed to secure more funding from subordinate lenders or equity investors. While EB5AN has only secondhand knowledge of what took place, information from third parties suggests that the developer had internal disputes over control and economics, which could have hurt efforts to raise funds. In any case, purported efforts to secure enough fresh investment capital failed.
Unfortunately, once the developer ran out of funds, it stopped meeting its loan obligations and defaulted on the senior EB-5 loan that is secured by recorded mortgages.
The EB-5 Fund’s Strong Position and Path Forward
In navigating this situation, the EB-5 Fund has engaged expert legal counsel and taken several strategic actions to protect its senior EB-5 loan. These actions include the following:
- Pursuing foreclosure
- Seeking “single-asset real estate” or “SARE” designation
- Seeking appointment of an independent, court-appointed trustee
- Providing interim DIP financing
- Encouraging third-party bids during a public sale
Each of these items is explained in greater detail below.
The EB-5 Fund’s Foreclosure
Because of how EB5AN negotiated and structured the senior EB-5 loan, the EB-5 Fund remains in a first-priority position. The EB-5 Fund’s collateral consists of pledges of 100% of Wohali’s equity and first lien deeds of trust over the entire property. These deeds of trust are properly recorded in both Summit and Morgan Counties, Utah.
For months, the EB-5 Fund has been working to enforce its rights and protect the interests of its EB-5 investors. The EB-5 Fund has hired expert legal counsel to assist in this effort. As a result, the EB-5 loan remains in a very strong position.
When a borrower defaults on a secured loan, the lender has the right to recover the collateral pledged against the debt through a foreclosure process. This was one of the first remedies that the EB-5 Fund pursued, initiating proceedings to foreclose the liens secured by the Wohali property.
In real estate, this means the trustee of the trust deed can sell the property by public auction to repay the outstanding loan balance. This process is known as foreclosure, and it is the legal mechanism that transfers control from a borrower to a lender or third-party buyer. A foreclosure follows the state foreclosure framework, with each state’s foreclosure laws being different. As an illustrative example, the process is similar to what happens when a homeowner fails to make mortgage payments to a bank.
In Utah, the process requires the following, among other things:
- the recording of a notice of default
- service of the notice of default on the borrower/owner and other parties who have a recorded interest in the property
- a three-month cure period
If the defaults are not cured by the end of the cure period, the foreclosure trustee can sell the property at a public sale after first complying with state-law requirements for publication, posting, etc.
The trustee under the Wohali trust deed commenced a non-judicial foreclosure in July 2025. The bankruptcy filing in August 2025, however, resulted in an automatic stay of the foreclosure process. The EB-5 Fund also filed a lawsuit in state court asking the court to appoint a receiver over Wohali and the assets securing the EB-5 loan.
Wohali’s Responsive Chapter 11 Bankruptcy Filing
In apparent response to the foreclosure and the EB-5 Fund’s request for a receiver, the developer of Wohali filed a Chapter 11 bankruptcy in August 2025. This is a common tactic used by developers facing a lender foreclosure action.
In a Chapter 11 bankruptcy, a business can continue to operate while it creates a plan to make its financial obligations more manageable, all subject to review and approval by the court. Unlike other forms of bankruptcy (such as Chapter 7 liquidation), Chapter 11 bankruptcy focuses on rehabilitation or sale, not dissolution. Companies often use this strategy to restructure finances, create a short-term operating plan, and work to maximize value for a potential sale process—all under court supervision.
Filing for Chapter 11 bankruptcy is not a light decision. It could mean the developer thinks the property is worth far more than its debts. If a developer thinks their project is underwater, they might not fight a foreclosure. But if a developer files for bankruptcy, hires attorneys, and negotiates budgets, it most likely thinks that the project’s equity is worth enough to justify the added time, cost, and scrutiny. The EB-5 Fund believes these actions show that—even after default—the developer still views Wohali as a highly valuable asset. That exact value remains to be seen.
In any event, the bankruptcy case has temporarily stalled the EB-5 Fund’s foreclosure. In the meantime, the property remains under legal protection with an independent trustee, with the EB-5 Fund remaining in a priority position.
The EB-5 Fund’s Successful Efforts to Appoint a Trustee
EB5AN believed that the developer was no longer able to successfully manage the project or bring the bankruptcy to a resolution that would benefit all of the project’s creditors. The EB-5 Fund quickly moved to do what could be done to ensure that the property and its assets were in responsible hands.
In bankruptcy, one way to protect assets is to seek the appointment of a Chapter 11 trustee. A Chapter 11 trustee is an unbiased third party with relevant experience who takes control of a borrower (including its bank accounts and operations). This change in control helps protect the interests of the borrower’s creditors until a resolution is reached.
Early in the process, the EB-5 Fund filed a motion for a trustee to step in to assume control of the Wohali project. We took swift action and applied pressure, and the motion was successful. The court appointed an experienced trustee to take control of the project. We view this appointment as a highly positive development for Wohali during this bankruptcy process.
Debtor-in-Possession (DIP) Financing
While the appointment of a trustee is a positive development, it does not solve a core problem. During bankruptcy, Wohali still needs money to operate. The project needs cash to protect the site, winterize the golf course, continue administrative operations, and prepare the property for a potential public sale. A stalled development tends to lose value quickly. Without money, staff leaves. Utilities might lapse. Insurance can be canceled. If structures are not completed, they can be damaged by weather.
To prevent these kinds of issues from arising during bankruptcy, a court-supervised financing mechanism called debtor-in-possession financing, or “DIP,” is often used. DIP financing is a short-term loan provided to a borrower in bankruptcy to help stabilize the project and maintain it while the process plays out. DIP financing requires court approval.
Wohali will need at least some DIP financing to help it remain secure, insured, and marketable. Having enough cash to pay these costs is key to protecting the value of the senior EB-5 loan’s collateral.
DIP financing can be provided by existing or new creditors of Wohali. This means that other parties can seek to provide DIP financing, not just the EB-5 Fund. The EB-5 Fund believed it best to propose its own DIP financing facility in an effort to protect the EB-5 loan and the interests of the EB-5 investors.
Prior to proposing its DIP facility, the EB-5 Fund explained the situation to all of its limited partners. While not required, EB5AN chose to conduct a vote to ensure a transparent and fair process for all EB-5 investors. An overwhelming majority of the EB-5 Fund’s investors voted to approve EB5AN’s DIP financing strategy.
The court approved the trustee’s recommendation for the EB-5 Fund’s interim DIP facility as the fairest and most beneficial for the project. The court authorized an interim DIP facility of approximately $4.3 million. This money is being provided directly to the project by the Wohali EB-5 Fund. Funds will be disbursed as requested by the trustee under a strict, court-approved budget. The budget covers only the essentials—payroll for key employees, public infrastructure interest payments, insurance, utilities, site protection, and certain work required to prepare for a successful public sale. This structure prevents waste and ensures that every dollar spent preserves or enhances the property’s value.
Multiple third parties made DIP financing proposals. Public news articles attest to the fact that many parties are interested in the Wohali project. Some of these parties are using what EB5AN believes are aggressive tactics in an effort to gain leverage in the bankruptcy process. We will not directly address the position of these self-interested parties, but the public court filings reveal some of their incentives.
With the EB-5 Fund’s interim DIP financing in place, the EB-5 loan’s collateral is further protected.
So Now What? Likely Scenarios for EB-5 Investor Repayment
As mentioned, the expected outcome of the bankruptcy process is a public sale. The case could also be resolved through a plan.
Once the anticipated Section 363 bankruptcy sale takes place, the three most likely outcomes are as follows:
- A third-party buyer purchases the project and pays off the EB-5 loan in full (or some other amount as ordered by the court).
- Alternatively, to the extent authorized by Section 363(k) of the Bankruptcy Code, the EB-5 Fund can “credit bid” for the Wohali property. If no third-party bids more than the EB-5 Fund’s credit bid, the EB-5 Fund, and by extension the EB-5 investors who are limited partners of the fund, would take ownership of the property.
- Finally, it is possible that an acceptable buyer of Wohali’s assets could come forward with a business plan that the EB-5 Fund finds acceptable. If so, as part of an acquisition by that buyer, agreements could be reached whereby all existing payment defaults are cured.
All three scenarios are expected to result in the EB-5 Fund resolving the senior EB-5 loan default and protecting EB-5 investor capital.
The first of the three scenarios is the simplest. This scenario involves a third-party purchase of the entire Wohali property at the public auction. Following the sale, the trustee must pay all DIP obligations and the full EB-5 loan balance (or such other amount as may be ordered by the court). Because the EB-5 Fund is in first position, repayment from a third-party sale is expected to happen automatically and should occur as part of the closing process. The buyer generally cannot acquire the property unless the EB-5 loan is paid in full at closing.
The second possibility is the EB-5 Fund’s credit-bid right. A credit bid allows a senior lender, in this case the EB-5 Fund, to “bid” the amount of its debt at auction. Here, the EB-5 Fund generally has the right to credit bid both the outstanding DIP obligations and the EB-5 loan claim. If competing bids do not reach the value the EB-5 Fund believes is appropriate, the EB-5 Fund can simply apply the outstanding loan balance as its bid and take title to the property. In this case, the foreclosure sale would be expected to transfer the land, the golf course, the amenities, the completed and partially completed structures, and all remaining residential lots directly to Wohali’s EB-5 Fund.
The third possibility is a cure and reinstatement of the EB-5 loan. While possible, a cure and reinstatement would likely require the buyer to demonstrate, to the EB-5 Fund’s satisfaction, that the buyer will be able to cure all defaults, make all future payments as and when they come due, and otherwise pay and satisfy the EB-5 loan in full. A cure and reinstatement would also likely require amendments to the EB-5 loan documents.
Regardless of which path occurs, EB5AN is confident that the Wohali project has sufficient value for the eventual full principal repayment of the senior EB-5 loan. In the first scenario, repayment comes from the buyer’s funds at closing. In the second scenario, repayment is achieved through the EB-5 Fund owning and subsequently monetizing the Wohali property. In the third scenario, repayment may come from both an initial cash infusion to cure existing defaults and then through payments over time under the revised terms of the EB-5 loan documents. The EB-5 Fund will evaluate all strategic options to return principal to its EB-5 investors.
High Expectations for Public Sale
Interest in the Wohali property already appears to be substantial. As highlighted above, Wohali’s Eagle Course has garnered national renown. It is likely a key driver of interest.
Multiple outlets have reported that Park City-based FinTech billionaire Doug Bergeron is preparing a bid to acquire Wohali through the bankruptcy process. He seems to be positioning himself to take over the private club community if the project goes to auction. As is in the public record, Bergeron has been extremely active in the court process.
According to recent press reports, it appears that Mr. Bergeron is already in early discussions with at least two luxury hotel groups and several real estate investment trusts (REITs) about partnering on a repositioned master plan for the site. The plan seems to include a branded luxury hotel, spa, multiple high-end restaurants, and an expanded, more flexible membership structure.
Additionally, through its day-to-day real estate business dealings, EB5AN regularly discusses large development projects with qualified development groups. As a result, EB5AN has taken reasonable opportunities to encourage potential buyers to participate in a fair and timely public sale process.
The EB-5 Fund has also been informed by the bankruptcy trustee that the bankruptcy trustee has fielded substantial interest in the assets from potential purchasers.
But what does this level of institutional interest mean for Wohali’s EB-5 investors? Sophisticated buyers see value in taking over the project, which reinforces confidence in the value of the collateral behind the senior EB-5 loan.
Concluding Thoughts
The situation at Wohali shows how important it is for EB-5 investors to invest in carefully structured projects that mitigate risks. EB5AN’s strategic actions have put the EB-5 Fund in a strong position to succeed despite Wohali’s challenges.
The immigration and financial outlook for EB-5 investors remains positive. The EB-5 Fund remains the senior secured lender in first position. All required jobs have already been created, and Form I-829 documentation has been assembled. Court-appointed guardrails are in place to protect the project and its EB-5 investors. The EB-5 Fund has provided an interim DIP facility to further protect the collateral.
Since the EB-5 program was created, many EB-5 projects have, unfortunately, lost capital. Many EB-5 regional center projects have also failed to create enough jobs or to comply with the EB-5 program, which results in EB-5 investors not obtaining permanent residency. Some have failed in both respects. A simple search on Google or ChatGPT will provide many examples. Wohali’s carefully planned structure, however, gives investors something exceptionally rare in EB-5: a distressed project where all EB-5 jobs have been created and the EB-5 Fund retains its first priority of repayment.
In a perfect world, every project would be completed with no complications. But we do not live in such a world. When issues do arise, though, our EB-5 investors can take comfort knowing that EB5AN structures its projects with the worst-case scenario in mind and best-in-class investor protections.
Our team is fully committed to protecting the investment and immigration interests of our EB-5 investors. We are confident in the strength of the EB-5 loan’s position and our strategic path forward.
According to Schoenfeld, “Despite the Wohali project’s financial challenges, EB5AN’s proactive and conservative structuring has protected EB-5 investors. We see a clear path for Wohali’s EB-5 investors to recover their invested funds and obtain United States permanent residency status.”
A Note Regarding Misinformation about Wohali
Over the last 13 years, EB5AN has emerged as a leader in the EB-5 industry. In any industry, leaders face fierce competition from competitors. The EB-5 industry is no exception.
While EB5AN expects to face strong competition, we have little tolerance for unethical or illegal behavior. EB5AN is aware that incorrect and misleading information has been posted about Wohali by others who operate in the EB-5 space. Such statements may have been made in an attempt to harm EB5AN’s reputation. Deliberately posting false information, however, crosses the line from fair competition into unethical conduct and possibly even violations of the law.
EB5AN has engaged legal counsel and is taking immediate and decisive legal action as necessary to protect its reputation and, in turn, its EB-5 investors. Any malicious defamation or dissemination of false information will be pursued to the fullest extent permitted by law.
Disclaimer
The information in this post reflects a summary of complex and evolving issues related to the ongoing bankruptcy process and litigation involving the Wohali project as of December 8, 2025. The contents hereof may not address all relevant facts or legal developments. The author makes no representation or warranty as to the accuracy, completeness, or timeliness of the information provided and has no obligation to supplement, update, or revise this post following publication. This post contains statements of opinion.
Nothing contained herein should be construed or relied upon as legal, financial, or investment advice. Any statements regarding potential outcomes or future events are forward-looking in nature, reflect only the author’s current opinions, may be impacted by actions of third parties beyond the control of EB5AN, including the bankruptcy court, and are generally subject to uncertainty and change.
