BRUNSWICK, GA. --- A bankruptcy judge cleared the way Thursday for creditors of the Sea Island Co. to vote in October on the luxury resort operator's plan to emerge from Chapter 11 protection by selling its holdings for at least $197.5 million.
Lenders owed more than $600 million by Sea Island and former company executives, retirees and other unsecured creditors claiming at least $100 million must vote to approve or reject the bankruptcy plan by Oct. 29.
Sea Island, a family-owned company that has operated secluded getaways on the Georgia coast since 1928, filed for bankruptcy Aug. 10. The company says costly upgrades and renovations aimed at luring wealthier customers, followed by a recession-driven toll on its resort and real-estate businesses, led to its insolvency.
Under Sea Island's plan, lenders including Synovus Bank, Bank of America and Bank of Scotland would recoup about $180 million, less than a third of outstanding loans. Unsecured creditors would be paid shares from a pool totaling just $3 million.
City no longer watched by Voting Rights Act
SANDY SPRINGS, GA. --- Authorities are allowing Sandy Springs to opt out of the federal Voting Rights Act's oversight of its elections.
The Justice Department agreed late Wednesday to exempt the city, noting that there had been no allegations of anyone being prohibited from voting in the north Atlanta city in the past decade.
Attorney Doug Chalmers told The Atlanta Journal-Constitution the rules were "time-consuming, expensive and a regulatory nightmare."