Colony hearing continued until Friday

 

Colony hearing continued until Friday

 

Date: April 19, 2010
by: Kurt Schultheis | City Editor

 
 

U.S. Bankruptcy Judge K. Rodney May heard from a list of witnesses the Colony Beach & Tennis Resort Association Monday in an attempt to argue why the judge should convert the resort’s Chapter 11 bankruptcy reorganization filing to a Chapter 7 liquidation.

The association, representing 232 unit owners, wants the bankruptcy pleading converted in an attempt, among other reasons, to remove Colony Chairman and owner Dr. Murray “Murf” Klauber from having control over their units.

On Monday morning, Colony President and General Manager Katie Klauber Moulton answered a variety of property upkeep and financial questions from association attorney Jeffery Warren.

David Karins, owner of Sarasota-based Karins Engineering Group Inc., also testified that repairs and maintenance to the buildings and common areas had never been performed by the association as part of its bankruptcy reorganization plan. Karins said the association pulled a permit for work in November and has since canceled a contract with the contractor hired to repair and replace siding, support posts and foundation repairs. Painting, waterproofing and other minor repairs were also a part of the canceled contract.

William M. Hitson, founder of the Days Inn hotel chain, also testified that he has signed a letter of intent to take over the duties of Klauber’s general partner role at the resort. Hitson’s intent is to create a new revenue-sharing agreement with unit owners similar to what exists with the Longboat Key Club and Resort and Inn on the Beach unit owners.

Hitson stated that he has developed two other similar successful condominium projects in Orlando and Cocoa Beach.

The hearing was continued until Friday, April 23, at a time to be determined.

The association has yet to complete its argument. Also Friday, Klauber and Colony lenders David Siegal and Randy Langley are expected to testify why they don’t believe the bankruptcy case should be converted.

Other parties also can call back all witnesses who testified Monday.

Judge May is not expected to rule on the bankruptcy conversion motion for 10 to 14 days after the hearing is deemed to be complete.

For more information on Friday’s hearing, check www.YourObserver.com for live updates.

Contact Kurt Schultheis at kschultheis@yourobserver.com.
 

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