Resort developer Ginn Cos. to liquidate 2 projects
The credit crunch and slumping real-estate sales have forced struggling Central Florida-based resort developer and operator Ginn Cos. to file to liquidate assets in two of its Florida residential projects, the upscale Tesoro development in Port St. Lucie and Quail West, near Naples.
Ginn, based in Celebration, was unable to refinance its $675 million in debt owed to its lenders, led by Credit Suisse, and filed the voluntary Chapter 7 bankruptcy petitions last week in West Palm Beach as part of an agreement reached with its lenders.
The filing listed liabilities of more than $717 million, with more than $1 million of that unsecured.
In a Chapter 7 liquidation, assets are typically ordered by the court to be auctioned off and whatever can be recovered is divided among secured creditors, after expenses are paid. Existing property owners would not be directly affected, and the golf course operations are expected to continue. None of the unsecured debt is expected to be repaid.