Colony Lender’s appeal denied

An appeal by Colony Lender LLC to postpone a Colony Beach & Tennis Resort bankruptcy hearing scheduled for 3 p.m. today in U.S. Bankruptcy Judge K. Rodney May’s courtroom was denied by U.S. District Judge James Whittemore in an April 9 memorandum.

Colony Lender sought a stay of today’s hearing while it appealed May’s ruling last month that stated Colony Lender violated an automatic stay when it sent demand letters to unit owners in August, telling them they could face millions of dollars in liabilities if they do not sell their units to Orlando-based Unicorp National Development Inc., which Unicorp President Chuck Whittall has in the form of an agreement in place to purchase Colony Lender’s resort assets.

In October, Colony Lender filed lawsuits against unit owners seeking more than $5 million in damages for unpaid rent plus interest on a disputed recreational facilities lease.

Colony Lender, which purchased overdue bank loans from longtime Colony owner Dr. Murray “Murf” Klauber, including an 80% interest in loans on the 2.3-acre recreational property, plus a 15% interest in the same property, argues that the recreational facilities lease is attached to the land and it has a right to pursue damages. It’s a claim the Colony Beach & Tennis Resort Association denies.

Whittemore’s denial of Colony Lender’s appeal, which he calls “not an appealable judgment,” means Colony Lender can’t appeal May’s ruling to a higher court and a hearing will begin this afternoon that allows parties to argue for or against appropriate sanctions against Colony Lender before May issues his sanctions ruling.

For more information on today’s hearing, check www.yourobserver.com this evening for updates and pick up a copy of Wednesday’s Longboat Observer.

Contact Kurt Schultheis at [email protected].