U.S. Bankruptcy Judge K. Rodney May could announce his decision on key issues involving the Colony Beach & Tennis Resort today in his Tampa courtroom.
May is expected to rule on both the proposed settlement between longtime Colony owner Dr. Murray “Murf” Klauber and the Colony Beach & Tennis Resort Association and the Chapter 11 reorganization plan for Klauber-owned entities.
That settlement would give $3 million to Klauber through a consulting agreement and distribute $2.3 million to a U.S. bankruptcy Chapter 7 trustee to pay creditors.
The settlement also absolves the association of a $25 million judgment for damages Klauber won in a bankruptcy appeals court last year.
But the settlement leaves out leaves Colony Lender LLC, the largest affected creditor in the bankruptcy case.
May suspended a foreclosure sale of resort assets Colony Lender had planned for Dec. 6, when the parties last appeared in May’s courtroom on Dec. 4. Colony Lender has since appealed May’s decision.
In December, May revealed he is wrestling with confirming a settlement plan that gives $3 million to Klauber, while Colony Lender LLC is left in limbo.
“One thing that still bothers me is if I confirm the plan, Klauber and investors get money that’s spendable and protected from collection,” May said at last month's hearing. “That’s taking a right away from Colony Lender.”
For updates, check back at YourObserver.com.
Contact Robin Hartill at email@example.com.
Currently 1 Response
- There will be no settlement as which ever side loses in Judge May's courtroom will trigger an appeal to the federal District Court and the Colony property will continue to remain in limbo much to the detriment of Longboat Key.
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