National Golf is America's largest operator of golf courses. Earlier this week, it warned analysts that its next earnings report could be disappointing and said it could not project revenue for 2002.

The company says its major tenant, privately held American Golf Corp., is having trouble paying its bills and that leases with American Golf may have to be revised. American Golf technically defaulted on its debt several months ago, which in turn has made National Golf default on some of its debt too, a statement issued by National Golf says.

National Golf owns 137 properties across the US, including Wood Ranch Country Club in Simi Valley and SeaCliff Country Club in Huntington Beach. Though company officials weren't able to take GlobeSt.com's phone calls on Friday, a prepared statement issued to the media quotes National Golf President James Sanich as saying that "we believe that our portfolio is well positioned to improve as the general economy moves toward recovery."