Please...we need advice? Harbor Hill at Provincetown closed its doors in September. They are filing Chapter 7 Bankruptcy and are for sale. We have been trying for years to dump our ownership which is paid in full. Can we get out of it now that they are bankrupt?
A few years ago, the developer/manager of two resorts we owned in Branson, MO, French Quarter Resort and Grand Regency at Thousand Hills, went in the liquidation bankruptcy. There were several things that happened during this process.
1. Both resorts remained open and the court assigned a management company to run them. In this case it was Spinnaker.
2. One of the buildings at French Quarter that had some of the timeshares weeks sold was used as collateral to secure bank loans, which separated it from all the other buildings, which had been sold out and had not been used as collateral for bank loans.
3. When the bankruptcy was closed, Spinnaker continued as the management company for French Quarter but, they didn't want Grand Regency. The court found another management company, the one managing the Colonade, to manage Grand Regency.
4. The building in French Quarter Resort that had been used as collateral for loans was sold to the highest bidder and those owners were out both their money and their weeks. Spinnaker offered them a "deal" to purchase a timeshare from them at one of their other resorts.
5. Grand Regency's new management company essentially took the money from MF's and ran. They now have a new management company and owners got tagged with a special assessment this year. Hopefully things will begin to look up at that orphaned resort.
A major difference is neither of these two resorts closed their doors. French Quarter Resort is a reasonably desirable mature resort with potential for a management company. I was surprised they didn't look at closing Grand Regency. When all the dust settled, RCI downgraded French Quarter from Gold Crown, which surprised me because nothing has really changed. Same amenities, same accommodations, same activities.
Will you find yourself out of your deed? Since the resort is closed I think that's the most likely possibility. Is it a done deal? Not if there's a management company out there who's willing to pay for the asset in bankruptcy court and continue managing it as a timeshare company.