Unsecured creditors of bankrupt Sea Island Company will get pennies on the dollar for the money they're owed. A federal bankruptcy judge has approved the coastal resort's sale to a four-way partnership of out-of-state investors. The bulk of the company's $212 million sale price will go to secured creditors like banks. Unsecured creditors like retired executives will get just $6 million of the $100 million they're owed.
A bankruptcy judge has approved Sea Island Co.'s plan to sell its luxury resorts, golf courses and private clubs to settle the Georgia company's Chapter 11 case. Judge John S. Dalis noted Sea Island's creditors voted almost unanimously in favor of the $212.4 million sale as he ruled in court Thursday.
Five company officials shared about $500,000 in bonuses after laying off workers and cutting salaries at the troubled resort company, one of Glynn County's largest private employers. Shortly after they took the bonuses, Sea Island declared bankruptcy.
The Georgia-based Sea Island Company has filed for Chapter 11 bankruptcy protection. The coastal resort and development firm had trouble finding buyers for undeveloped land. Sea Island Company needed land buyers because it was in debt to the tune of $428 million.
The sale of more than 20,000 acres on the coast comes while the resort and land development company seeks to restructure itself. Brunswick's largest employer faces massive debt after pursuing luxury customers just before the recession hit.