Sea Island Resort Agrees to Sell Most of Its Assets

Luxury Georgia resort Sea Island Co. agreed to sell most of its assets to a group of investors including Avenue Capital Group and Oaktree Capital Management.

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.
Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.