Colony trustee seeks $23 million judgment sale

William Maloney, the Colony Beach & Tennis Resort Chapter 7 trustee that controls a $23 million judgment against unit owners, sees no settlement among Colony parties in sight. So, in a June 3 motion, the trustee’s legal counsel suggests it’s time to sell the judgment for $3.5 million to an interested party: Orlando-based Unicorp National Development President Chuck Whittall.

The motion that U.S. Bankruptcy Judge K. Rodney May will review Thursday in his Tampa-based courtroom asks May to allow him to sell the judgment to Unicorp for $3.5 million, or hold an auction June 26 to determine if anyone is willing to bid higher or submit better offers than Unicorp. Maloney and Whittall have already signed a contract for the purchase of the judgment that was submitted into evidence as part of the motion.

Maloney notes Unicorp has offered $3.5 million in cash and has delivered a $200,000 deposit into a trust account for the judgment. And if May approves the sale to Unicorp, Maloney states Unicorp has agreed to pay the trustee the additional $3.3 million in cash to the partnership estate Maloney controls.

Maloney suggests that if the sale occurs and there are no other higher bids or better offers, the sale agreement with Unicorp would move forward.

“The trustee believes it is time to efficiently monetize the assets of the estate,” the motion states.  The motion also states that all efforts to arrive at a settlement with the association has failed.

For more information on the trustee's request, pick up a copy of Wednesday's Longboat Observer and check www.yourobserver.com Thursday for an update regarding May's decision.

Contact Kurt Schultheis at [email protected].