Bloomberg News

Sawgrass Owners Allowed to Send Recovery Plan to Creditors

September 21, 2011

(Updates with hearing date in fifth paragraph.)

Sept. 21 (Bloomberg) -- The owners of Florida’s Sawgrass Marriott Resort won bankruptcy court approval to seek votes on a reorganization plan that will give ownership of the resort to secured lender Goldman Sachs Mortgage Co.

U.S. Bankruptcy Judge Paul Glenn in Jacksonville, Florida, ruled yesterday that the second amended disclosure statement explaining the proposal by RQB Resort LP provides enough information for creditors to make an informed decision.

The plan would give the Goldman Sachs Group Inc. unit ownership of the resort, an unsecured deficiency claim for about $63.8 million, and a secured claim of $132 million. Trade suppliers with $190,000 in claims would recover about half of that amount, court papers show.

Goldman Sachs Commercial Mortgage Capital LP helped finance the $220.5 million purchase of the 65-acre resort in Ponte Vedra Beach, Florida, by RQB Resort and RQB Development.

A hearing on confirmation of the plan is scheduled for Oct. 18. RQB Resort sought Chapter 11 protection in March 2010 listing assets and debt of as much as $500 million each. RQB Development also filed for court protection.

The case is In re RQB Resort LP, 10-01596, U.S. Bankruptcy Court, Middle District of Florida (Jacksonville).

--Editors: Stephen Farr, Peter Blumberg

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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