The plan comes just days after Marriott filed court papers declaring its frustration with the slow pace of RQB Resort’s restructuring and requesting permission to propose its plan of reorganization for the company.
The owner of the Sawgrass Marriott Resort & Cabana Club, Ponte Vedra Beach, Fla., is proposing to drop its Marriott affiliation upon its exit from Chapter 11 bankruptcy protection, reports the Dow Jones Daily Bankruptcy Review.
According to the Chapter 11 plan of reorganization that resort owner RQB Resort LP filed Thursday, which is subject to bankruptcy-court approval, the company would reject the franchise agreement with Marriott International Inc. that allows it to operate its resort under the Marriott flag.
RQB Resort said it could then choose to rebrand the property as the TPC Sawgrass Golf Resort and Spa in honor of the championship golf course on which resort guests can play. The course hosts the Players Championship tournament for professional golfers each May.
RQB Resort said it could also, or alternatively, replace the Marriott franchise agreement with “a comparable brand.”
The plan comes just days after Marriott filed court papers declaring its frustration with the slow pace of RQB Resort’s restructuring and requesting permission to propose its plan of reorganization for the company. The bankruptcy court is scheduled to consider Marriott’s request at a Sept. 8 hearing.
Under RQB Resort’s Chapter 11 plan, that mortgage lender, Goldman Sachs Mortgage Co., would receive all of the new equity in the restructured company in exchange for its $132 million secured claim.
RQB’s current equity holders would see their shares canceled and wouldn’t recover anything under the plan, while holders of general unsecured claims against RQB Resort and an affiliate–including Marriott–are slated to share in a pool of nearly $2.3 million in cash. Those creditors that hold general unsecured trade claims against RQB Resort only would share in $20,000 in cash.
The U.S. Bankruptcy Court in Jacksonville, Fla., will consider approving RQB Resort’s disclosure statement, or plan outline, at a Sept. 15 hearing. The outline must be approved before RQB Resort’s creditors may begin casting their votes on the plan.
RQB Resort sought Chapter 11 protection in March 2010 after running into trouble on its mortgage. For months after, it and Goldman Sachs fought over the value of the 65-acre resort and the value of the mortgage debt. This year, a bankruptcy judge issued a ruling setting the value at $132 million.
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