National Golf Properties Inc. said Chairman David Price agreed to support a sale of "all or a substantial portion" of the largest publicly traded U.S. golf course owner as part of a debt restructuring of a related company he also controls.
Under the restructuring, Bank of America Corp. extended American Golf Corp.'s loan payments until March 31 and waived existing defaults, Santa Monica-based National said. American Golf leases most of National's properties, and Price is chairman of both firms.
A decline in American Golf's business last year triggered a default on both companies' debt. To solve the problems, the two companies said they would merge.
Charles "Skip" Paul, National Golf's interim chief executive, didn't return calls for comment. A company spokeswoman declined to comment.
Shares of National Golf rose 7 cents to $11.51 on the NYSE.