Sea Island Resort Agrees to Sell Most of Its Assets
The price of the transaction was not disclosed. Sea Island had earlier been close to an agreement to be bought by Avenue Capital and Oaktree in a deal worth about $200 million, Bloomberg News said.
Sea Island also filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy code, Bloomberg News said.
The resort is on the southeast coast of Georgia. Sea Island hired Goldman Sachs Group Inc (GS). in February to find a buyer. In the middle of the last decade, CEO Bill Jones III spent over $200 million on renovating the resort.
"It's a gorgeous property, and I would imagine they see a good opportunity to reset the values and mark-to-market it and make it a worthwhile investment," Lewis Feldman, a real estate attorney and managing partner at Goodwin Procter LLP in Los Angeles, told Bloomberg News. Feldman isn't involved in the deal.