They already have 10 companies in trouble but the troubled Kingdom Developments is about to walk away from $1.2 million it spent on a golf course in Tamworth.
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That's the deposit the Sydney company - behind the failed Gladstone Avenue apartment block - paid for the Longyard Golf Course.
The 18-hole course, designed by Greg Norman and Bob Harrison, and The Mill Tavern were purchased in January last year.
The company had plans to upgrade the tavern and course.
Kingdom Developments was due to take over the property from current owner John O'Rourke in December last year. The settlement was delayed again earlier this year.
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However, there are reports the company is in real strife, with 10 projects in receivership and a similar amount back on the market, they have decided to walk away from the sale.
"With all the interest rate rises, we just weren't able to make it work," director Andrew Bodnar said.
"We've been trying to find different lenders to fund it, but nobody wants to fund it at the moment, so at the moment we're at liberty of the owner and the owner is not able to accommodate what we need to make it work."
Kingdom executive Sean Tng said there was a lack of investor interest in completing the multi-million-dollar sale.
"The valuation wasn't sufficient for the purchase in the current market and we couldn't secure funding for it," Acquisitions and Development Executive Mr Tng said.
Those are the same problems Kingdom is facing in several other developments, including at Cronulla and Caringbah near Sydney.
However, Mr O'Rourke insisted there was no way they could pull out of the deal.
"We hold an unconditional contract with director's guarantees for specific performance, so you can't just pull out of a contract because you feel like it," Mr O'Rourke said.
"It was not subject to finance or anything else, anything at all. It is an unconditional contract.
"The Kingdom guys are going to be in a world of hurt by the time this thing's complete.
"At the moment they're suggesting they're pulling out, but you can't pull out of an unconditional contract."
Kingdom Developments is struggling to keep its head above water after having committed to more than 30 projects.
Since December, many of those have fallen in a heap. Administrators have been called in on 10 of their projects, two have been sold after the lender took control of the property and there are a further six where lenders are putting pressure on Kingdom.
In many Kingdom projects, the investors will not end up seeing a cent, it has been reported.
