The lawsuit filed against Ann Arbor Country Club by a representative of the new investor that now holds its $1.7 million mortgage was dismissed Wednesday in Washtenaw County Circuit Court.

Judge David Swartz ruled on behalf of the club in the effort by Michael Weikle to disallow an April 1 membership meeting and remove board members who - while representing the club - also formed a corporation that sought to purchase the mortgage.

“(The ruling) means that Mr. Weikle’s lawsuit is dismissed,” said Joe Phillips, attorney for the club. “What it means in terms of dealing with his client who holds the mortgage, I have no idea.”

He continued: “We’e in a difficult situation. We’re trying to find a solution.”

Weikle said he’s weighing an appeal to the ruling, but also hopes that the club and investor can reach an agreement on a payment plan. So far, payment has not been made to the mortgage’s new owner, he said.

“I asked them if they wanted to meet to discuss several possibilities and have not heard back yet,” Weikle said.

The lawsuit was filed March 23, after Citizens Bank sold the club’s $1.7 million loan to A2C2 LLC, based in West Virginia. The bank had notified the club during the winter that the debt on the 200-acre property in the Loch Alpine subdivision west of Ann Arbor would be sold.

The club had been making interest-only payments on the debt over the past year. When its membership level dropped below 120, the club defaulted on its agreement with the bank, and Citizens announced its intent to sell the note at a discount.

A2C2 bought the note for $625,000 in early March, and the corporation that included board members disbanded.

Since then, club members and neighbors have been considering how to keep the club viable.

The dismissal of the lawsuit means the April 1 vote of members to reduce rates - a move to incent more people to join - and give the board the authority to liquidate the club stands.

Both concern Weikle and the new investor, he said, since their goal also is profitability to retain the club in the neighborhood and generate enough revenue to cover both operation costs and the debt.

He’s also expressed concern that a bankruptcy wouldn’t benefit the neighborhood or generate enough through a club liquidation to cover the investor’s outlay.

The board, Phillips said, “is continuing to have discussions and weighing their options.”

The investor, Weikle said, “quite naturally is losing patience.”

He added that the loan was purchased after the club had defaulted on the loan.

“If we choose to foreclose … they already have notice,” Weikle said. “I’m hopeful that we’ll all get together … and do what’s in the best interest of members and shareholders.”

Meanwhile, the club is open and accepting new memberships based on the lower rate structure, Phillips said. Online information on rates were expected to be updated soon to reflect the new structure.

Paula Gardner is Business News Director of AnnArbor.com. Contact her at 734-623-2586 or by email. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.