This gilded coastal resort favored by generations of affluent Atlantans emerged Wednesday from months of debt and doubt with the announcement that two out-of-state investment firms will pay roughly 30 cents on the dollar for the Georgia jewel. But the purchase raises new questions about the direction of the resort, which fell into financial ruin after an ill-timed bid to appeal to an even higher-end market. The Sea Island Co. filed for Chapter 11 bankruptcy late Tuesday, citing $600 million in debt. Oaktree Capital Management of Los Angeles and Avenue Capital Group of New York, both which specialize in distressed properties, have offered $197.5 million for the Cloister hotel, the Lodge at St. Simons, various spas, clubs and golf courses.
The formal auction is scheduled for mid-October; closing should occur by November. The Oaktree-Avenue pairing beat out at least four other serious contenders for the coveted resort. In July, the Atlanta Journal-Constitution reported Starwood Capital, Anschultz Entertainment Group, Huizenga Holdings and The Gary Player Group were among them. According to Bill Jones III, the fourth-generation Jones to run Sea Island, it’s business as usual for homeowners, visitors and employees of the upscale resort near Brunswick. “We’ve gone through a very difficult time, and I feel like we achieved the best possible outcome we possibly could, given the circumstances,” Jones said in an interview Wednesday with The Atlanta Journal-Constitution. “I’m sorry we’ve all been through this (but) we have the opportunity to build a new foundation … Sea Island has a bright future.”
Jones and Sea Island president David Bansmer will continue to run the resort that stretches across Sea Island and onto St. Simons Island. Jones sought to reassure homeowners and employees in separate meetings Wednesday at the Cloister, telling them their homes and 1,400 jobs won’t be threatened by new ownership. “This could have been a horrible nightmare,” said Bob Prater, an Atlantan and Sea Island member for a dozen years. “(Jones) did the best he could under the circumstances.” Full report from AJC.com…
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Sea Island files for bankruptcy, announces sale
The formal auction is scheduled for mid-October; closing should occur by November. The Oaktree-Avenue pairing beat out at least four other serious contenders for the coveted resort. In July, the Atlanta Journal-Constitution reported Starwood Capital, Anschultz Entertainment Group, Huizenga Holdings and The Gary Player Group were among them. According to Bill Jones III, the fourth-generation Jones to run Sea Island, it’s business as usual for homeowners, visitors and employees of the upscale resort near Brunswick. “We’ve gone through a very difficult time, and I feel like we achieved the best possible outcome we possibly could, given the circumstances,” Jones said in an interview Wednesday with The Atlanta Journal-Constitution. “I’m sorry we’ve all been through this (but) we have the opportunity to build a new foundation … Sea Island has a bright future.”
Jones and Sea Island president David Bansmer will continue to run the resort that stretches across Sea Island and onto St. Simons Island. Jones sought to reassure homeowners and employees in separate meetings Wednesday at the Cloister, telling them their homes and 1,400 jobs won’t be threatened by new ownership. “This could have been a horrible nightmare,” said Bob Prater, an Atlantan and Sea Island member for a dozen years. “(Jones) did the best he could under the circumstances.” Full report from AJC.com…