Apollo-Backed Golfing Chain Paves Way for Contentious Debt Move

ClubCorp Holdings Inc., a golf and country club operator backed by Apollo Global Management Inc., has started the process of moving two of its businesses into different legal entities as talks with creditors falter ahead of a $1.1 billion debt maturity, according to people familiar with the matter.

The strategy often paves the way for controversial debt maneuvers, known in industry jargon as drop-down transactions, and could allow ClubCorp to raise new money by borrowing against the transferred assets.

A representative for the Dallas-based company, which re-branded last year to Invited, said discussions were terminated to extend ...