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(Updates with forthcoming plan changes in third paragraph.)
Sept. 20 (Bloomberg) -- Barnes Bay Development Ltd., owner of the Viceroy Anguilla Resort & Residences on the British West Indies island of Anguilla, will be denied approval of its reorganization plan, which discriminates against creditors, a judge said.
U.S. Bankruptcy Judge Peter Walsh in Wilmington, Delaware, said today that he will issue a written decision giving his reasons by the end of the week.
Barnes Bay will seek approval of a modified plan that won’t pay anything to a group of unsecured creditors, referred to as the PSA creditors, which previously agreed to buy units at the resort, lawyers for Barnes Bay told Walsh.
“They get nothing other than the opportunity to buy the unit” under the modified plan, said Charles R. Gibbs, a Barnes Bay attorney. The company will “eliminate the cash option” so “PSA creditors can accept to close on the contract or they get nothing, and have all their rights” to pursue lawsuits.
The case is In re Barnes Bay Development Ltd., 11-10792, U.S. Bankruptcy Court, District of Delaware (Wilmington).
--Editors: Charles Carter, Stephen Farr
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