Nov. 5 (Bloomberg) -- The Malibu Country Club, part-owned by former Lehman Brothers Holdings Inc. Chief Executive Richard Fuld, filed for bankruptcy protection after negotiations for a loan extension failed.

The company, officially known as Malibu Associates LLC, owns the 6,740-yard 18-hole golf course set on about 650 acres in Malibu and a 10,000 square foot clubhouse, according to Chapter 11 documents filed Nov. 3 in U.S. Bankruptcy Court in San Fernando Valley, California.

Malibu Associates had assets of $42.9 million and debt of $35.8 million, according to court papers.

Fuld owns about 5 percent of Malibu Associates through a company called RSF Jr. LLC, court papers show. Fuld was at the helm of the fourth-largest investment bank when it collapsed and filed the largest bankruptcy in U.S. history with more than $613 billion in debt.

Malibu Associates also listed Michael Moritz and Doug Leone as investors, each owning 14 percent of the company. The addresses listed for their stakes are the same as Menlo Park, California-based venture-capital firm Sequoia Capital Ltd., where a Michael Moritz and Douglas Leone are general partners.

A call to Sequoia for comment wasn’t immediately returned.

California National Bank froze the club’s credit line in May and Malibu Associates wasn’t able to negotiate an extension. A receiver was to take over the company as soon as today, according to court documents.

Seized by Regulators

Malibu Associates owes California National Bank about $34.6 million, secured by all the company’s assets, court papers show. California National Bank was seized by federal regulators last week and its assets were acquired by U.S. Bancorp.

“Not surprisingly, with the changing of the guard so fresh,” U.S. Bancorp wasn’t able to consider Malibu Associates’ request to halt the receivership, attorneys for the club wrote.

Malibu Associates said it plans to continue negotiating with the bank regarding the loan.

The course was built by a group of Japanese monks in 1977.

“As part of their religion, and as a tribute to God, they desired to build a golf course high along the Mulholland mountain ridge,” according to the Malibu Club’s Web site.

The case is: In re Malibu Associates LLC, 09-24625, U.S. Bankruptcy Court, Central District of California (San Fernando Valley).

To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net.

Last Updated: November 5, 2009 18:01 EST