A California company has sought bankruptcy protection in San Antonio after it was unable to gain traction on its ambitious plans to build a community for military personnel and veterans on the former site of the Pecan Valley Golf Club on the Southeast Side.

The Valor Club Partners LLC filed for Chapter 11 on Tuesday, about 4½ hours before 54 acres it owns around the course were set to be auctioned off.

Hornet Debt Fund LLC posted the property for foreclosure on May 1 after its nearly $4.8 million loan fell into default. The note is due in full June 20, property records show. The Lakeway-based lender provides short-term, high-interest loans to real estate developers and others.

In its bare-bones bankruptcy petition, Los Angeles-based Valor Club Partners listed no more than $50,000 in assets and liabilities ranging from $1 million to $10 million. A Chapter 11 bankruptcy allows a company to reorganize its debts while continuing to operate and stops foreclosure auctions from proceeding.

READ MORE: Land for the Valor Club, a long-planned San Antonio military development, headed to foreclosure

Valor Club Partners’ two largest unsecured creditors are the LID Trust of 2003 of West Hollywood, Calif., with a $2.6 million claim, and CalPrivate of Beverly Hills, with a $1.5 million claim.

CalPrivate shares the same address as Century Pacific, a developer of multifamily projects headed by Irwin Deutch.

Deutch, Valor Club Partners’ managing member who signed the bankruptcy papers, didn’t respond to a phone call seeking comment. William “Dick” Davis Jr., a San Antonio attorney representing the company in the bankruptcy case, didn’t respond to an email.

The bankruptcy is the latest trouble for the company.

In 2022, another lender foreclosed on more than 160 acres that had been part of the golf club after Valor Club Partners defaulted on a loan. The lender, PVG 2008 LLC of Pennsylvania, still owns that property, which remains undeveloped. It had owned the golf course, which shuttered in 2012 after years of financial woes.

The foreclosure left Valor Club Partners with about 54 acres. A court-appointed receiver for a fund that loaned money to the company in 2018 sought to foreclose on that land in 2024, but the foreclosure never happened.

Before the golf course closed, it had been managed by Foresight Loft LLC. One of Foresight’s executives hit on the idea of developing a community for military personnel and veterans after seeing disabled veterans playing golf and thought the sport could be therapeutic for them.

RELATED: ‘It’s closer now than it ever was’: Planned veterans community on Southeast Side is inching ahead

The plan was to originally develop the golf course under a nonprofit before it teamed up with Deutch and his Valor Club Partners. They dubbed the project the Valor Club.

The Valor Club Partners had acquired the more than 200 acres from PVG 2008 in 2017 and 2018.

Initial plans included a 200-room hotel and event center, a golf course adapted for disabled users, BMX racetrack, an athletic facility, and mental health and job training services, along with housing and shops. Nearby residents, though, opposed the project, worried it would produce too much traffic and density.

One person involved estimated the development cost could approach $300 million.

The Valor Club Partners struggled to attract investors and financing. The property remains vacant. 

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This article originally published at Long-stalled San Antonio development designed for military, veterans files bankruptcy.