Fri., September 10, 2010 2:31pm (EDT)

Judge Rejects Sea Island Bid

By Associated Press

Updated: 3 years ago

BRUNSWICK,Ga.  —   A U.S. Bankruptcy Court judge refused to permit a late bid of about $199 million for the Sea Island Co. U.S. Bankruptcy Court Judge John Dalis on Thursday rebuffed the offer by Starwood Capital Group, which dropped out of the initial bidding.

Sea Island already had agreed to sell its golf courses, hotels, spa, beach club and other resort properties for a minimum of $197.5 million to a joint venture managed by Oaktree Capital Management LP of Los Angeles and Avenue Capital Group of New York.

Oaktree-Avenue beat out Starwood and KSL Recreation. After Sea Island filed for Chapter 11 protection from its creditors on Aug. 10, Starwood made its new offer.

Dalis said it would be inappropriate to let Starwood come in with a late bid.