Trustee will oversee Colony settlement hearing

 

Trustee will oversee Colony settlement hearing

 

Date: July 23, 2010
by: Kurt Schultheis | City Editor

 
 

U.S. Bankruptcy trustee William Maloney believes there is still a good chance the cash-strapped Colony Beach & Tennis Resort can be revitalized.

Maloney, who currently has total control over the resort at 1620 Gulf of Mexico Drive, told Tampa-based U.S. Bankruptcy Judge K. Rodney May in his initial report Thursday, July 22 that he will oversee a settlement conference between affected parties next week in Sarasota.

Noting that he has decided to keep the hotel open until further notice because “it’s breaking even,” Maloney told the judge he does not believe the resort’s bankruptcy case should be converted to a Chapter 7 liquidation.

Maloney told the judge that he has identified 13 potential investors who all have expressed an interest in sponsoring a plan or restructuring of the resort. All of the investors, Maloney said, have presented Maloney with information on how their plans can be financed.

“There is a strong interest from many players,” Maloney said. “I feel highly confident a deal could be made to put the Colony back together again.”

A settlement conference will now take place next week with a representative of the association that has authority to make decisions, Colony owner Dr. Murray “Murf” Klauber, Colony President and General Manager Katie Moulton, Colony Lender representatives David Siegal and Randy Langley and every party’s respective legal counsel.

For more information about the conference and the trustee’s report, pick up a copy of the Thursday, July 29 Longboat Observer.

Contact Kurt Schultheis at kschultheis@yourobserver.com.
 

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Currently 1 Response

  • 1.
  • What the writer fails to tell is that the Colony Hotel operation is closing on August 7th. On July 28th the Association of the Colony(the individual unit owners) by their Board will present their term's of settlement to the Trustee in Bankruptcy. Stay tuned for the truth and nothing but the truth on this very important development with no spin ADDED.
  •  
  • George McFarland
    Fri 23rd Jul 2010
    at 10:39am
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