Thu., January 28, 2010 5:06pm (EST)

Sea Island Co. Defaults On Debt
By Orlando Montoya
Updated: 4 years ago

ST. SIMONS ISLAND, Ga.  —  
A major employer on Georgia's coast is defaulting on debt and working with lenders to fix the company's finances.

Sea Island Company is one of Glynn County's largest employers and is best known for the five-star hotel, The Cloister.

Two years ago, the company laid off about 200 workers.

Company officials say, this week's news won't affect operations.

Spokesman Mike Geczi says, last week's announcement of a new P.G.A. tournament on Sea Island is an example of confidence that others have in the company's ability to turn its finances around.

"The P.G.A. felt strongly enough about our future to go ahead and make that announcement," Geczi says. "They were fully aware of what we were going to be saying a week later."

Sea Island was deeply affected by the housing and travel downturns.

Published reports put the amount of their debt default at more than $200 million.