Sale of Daufuskie Island Resort still languishing; an auction may be next
By JOSH McCANN
jmccann@islandpacket.com
843-706-8145
Published Wednesday, April 21, 2010
|
The planned sale of the bankrupt Daufuskie Island Resort & Breathe Spa, which was expected to close in January, has not been consummated, leaving uncertain the fate of much of the sparsely developed island.
Although there is a "very real possibility" Montauk Resorts will obtain financing for the $49.5 million deal, other alternatives are being considered, including a $30 million offer from another bidder and a public auction, according to the case's trustee, Robert C. Onorato.
In December, a judge approved Montauk's offer, the highest to emerge after Onorato had marketed the property for months. At the time, Judge John E. Waites said he feared that if he did not approve Montauk's offer, the resort might be sold piecemeal, with little benefit to creditors or the community.
Montauk, managed by NFL-player-turned-developer Mike Bass, has made what appears to be its best effort to secure the money in a difficult economy but has encountered delays, so it's necessary to consider other options, Onorato said in a written statement.
"Many creditors need to be paid, and ample time has been allowed," Onorato said. "In my fiduciary capacity, I'm compelled to move the process forward without delay."
The resort, being run on loans to be repaid upon its sale, is spending the bare minimum necessary to operate and has limited funds remaining, a trustee's spokesman said Wednesday.
"That won't last much longer," trustee spokesman Tobin Spirer said of the loans. "This matter needs to be brought to resolution."
Onorato has had detailed discussions with the unnamed second bidder, in case Montauk doesn't secure financing, he said.
The resort includes an inn, two golf courses, tennis courts, several restaurants, an equestrian center and entitlements to develop more than 500 commercial and residential parcels. Owners Gayle and Bill Dixon declared bankruptcy in January 2009.
Should neither bidder find funding and no other viable bidder appear, Onorato has proposed an auction on or about May 14.
Spirer said that was the "least desirable alternative" because it would presumably fetch the least money for creditors and could split up the assets.
Sale of Daufuskie Island Resort still languishing; an auction may be next
By JOSH McCANN
jmccann@islandpacket.com
843-706-8145
Published Wednesday, April 21, 2010
|
The planned sale of the bankrupt Daufuskie Island Resort & Breathe Spa, which was expected to close in January, has not been consummated, leaving uncertain the fate of much of the sparsely developed island.
Although there is a "very real possibility" Montauk Resorts will obtain financing for the $49.5 million deal, other alternatives are being considered, including a $30 million offer from another bidder and a public auction, according to the case's trustee, Robert C. Onorato.
In December, a judge approved Montauk's offer, the highest to emerge after Onorato had marketed the property for months. At the time, Judge John E. Waites said he feared that if he did not approve Montauk's offer, the resort might be sold piecemeal, with little benefit to creditors or the community.
Montauk, managed by NFL-player-turned-developer Mike Bass, has made what appears to be its best effort to secure the money in a difficult economy but has encountered delays, so it's necessary to consider other options, Onorato said in a written statement.
"Many creditors need to be paid, and ample time has been allowed," Onorato said. "In my fiduciary capacity, I'm compelled to move the process forward without delay."
The resort, being run on loans to be repaid upon its sale, is spending the bare minimum necessary to operate and has limited funds remaining, a trustee's spokesman said Wednesday.
"That won't last much longer," trustee spokesman Tobin Spirer said of the loans. "This matter needs to be brought to resolution."
Onorato has had detailed discussions with the unnamed second bidder, in case Montauk doesn't secure financing, he said.
The resort includes an inn, two golf courses, tennis courts, several restaurants, an equestrian center and entitlements to develop more than 500 commercial and residential parcels. Owners Gayle and Bill Dixon declared bankruptcy in January 2009.
Should neither bidder find funding and no other viable bidder appear, Onorato has proposed an auction on or about May 14.
Spirer said that was the "least desirable alternative" because it would presumably fetch the least money for creditors and could split up the assets.
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