Sea Island bankruptcy case cleared for vote by creditors Oct. 29

Sea Island bankruptcy case moves forward

BRUNSWICK, Ga. — A bankruptcy judge has approved the final step for creditors of the Sea Island Company to vote next month to approve or reject the resort operator’s plan to emerge from Chapter 11 protection.

Sea Island owes lenders more than $600 million, in addition to at least $100 million owed to former executives, retirees and other unsecured creditors.

Judge John Dalis on Thursday approved the disclosure statement Sea Island must send to creditors eligible to vote on the company’s plan to sell its resorts, golf courses and private clubs for at least $197.5 million. Votes must be cast by Oct. 29.

Under the company’s plan, banks would recoup less than one-third of outstanding loans. Unsecured creditors would get substantially less — likely no more than 3 cents on the dollar.