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Specializing in insolvency and complex commercial matters since 1974

Royal Public Fort Myers II, LLC Confirms Its Chapter 11 Plan Including A Partial Condo Termination - January 25, 2012

On January 25, 2012, the United States Bankruptcy Court for the Middle District of Florida, Ft. Myers Division, confirmed the plan of reorganization proposed by Royal Public Fort Myers, II (“Royal Public”). In a first of its kind restructuring in Chapter 11, Royal Public simultaneously sought and obtained approval of a “partial termination” of the condominium under Florida Statutes Chapter 718, as recently amended by the Florida Legislature in July 2011 to address phantom assessment and leverage issues for Florida condominiums. The partial termination in Chapter 11 and under Fla. Stat. Chapter 718, was supported by both the condominium association and the secured lender, Busey Bank. Royal Public is the developer of the Marbella on Cypress condominium project located in Lee County. The development includes a mixture of 2 and 3 bedroom coach homes with Mediterranean styling, located in four residential buildings, as well as an amenity package including gatehouse, clubhouse with exercise facility, a movie theater, and recreational facilities including a pool and spa and a nature preserve. Stephen Leslie and Daniel Fogarty lead the firm’s representation in this matter.