Florida-based resort developer and operator Ginn Cos. has filed for Chapter 7 bankruptcy, the Orlando Sentinel reports. The company plans to to liquidate assets in two of its residential projects, the Tesoro development in Port St. Lucie and Quail West, near Naples. The company's Reunion Resort development in Osceola County and Hammock Beach Resort, a beachfront development in Palm Beach, are not affected by the filing.
The move comes as a consequence of Ginn being unable to refinance the $675 million owed to its lenders, led by Credit Suisse. In an effort to satisfy its lenders, Ginn will allow them to take partial control of Ginn sur Mer, an oceanfront resort under development on Grand Bahama Island, through a joint venture arrangement. In addition, the company will transfer the Laurelmor resort development in North Carolina to new owners in return for removal of liens on the property.
Laurelmor, a 6,000-acre luxury golf resort under construction in Watauga and Wilkes counties, was to be the richest, largest development in Northwest North Carolina. Deeds for the new owners— BR Development Group LLC and Blowing Rock Resort Venture LLC— were recorded yesterday in Wilkes County and last Tuesday in Watauga County. The value of the transfer was a little more than $32 million, according the the Winston-Salem Journal.