"It would have members pay $45 million for assets that had been independently appraised at $12 million."

Thanks to reader Del for Toby Tobin's analysis of the situation at Reynold's Plantation, which has unfolded recently with Bank of America moving in and a last ditch effort to sell to the members didn't go very far.

Yesterday's vote climaxed an attempt by Reynolds to convince club members to provide the needed $45 million by buying the club assets. Reynolds attempt failed on many levels. First, they failed to keep members informed. Members were stunned when Mercer Reynolds first notified them of the company's financial plight on February 3rd. There simply was not enough time to put together a viable deal with members.

Reynolds embarked on a campaign to sell the concept through a committee of supportive members while withholding information vital for an informed decision. Reynolds came across as arrogant and disingenuous.

The "take it or leave it" offer was laughable on its face. It would have members pay $45 million for assets that had been independently appraised at $12 million. Reynolds would essentially maintain control over key decisions, membership prices, a portion of new membership deposits, and all real estate sales. Reynolds could offer membership incentives for new lot or home buyers that would undermine existing members' efforts to sell their properties at a competitive price. Watch this comic video which portrays the way many members viewed the Reynolds offer.