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Specializing in insolvency and complex commercial matters since 1974

Chapter 11 Plan Filed By Luxury British Virgin Islands Resort Confirmed- January 20, 2015

On January 20, 2015, after intense litigation involving eight days of testimony and hundreds of evidentiary exhibits, the Honorable Michael G. Williamson of the United States Bankruptcy Court for the Middle District of Florida, Tampa Division, entered an order confirming the joint Chapter 11 plan of Scrub Island Development Group Limited and Scrub Island Construction Limited. The Debtors, which own a 230 acre island in the British Virgin Islands improved by a luxury Marriott Autograph Collection resort and marina, were represented by Stichter, Riedel. They filed chapter 11 petitions in November 2013 after the principal lender obtained an order appointing a receiver from the Eastern Caribbean Supreme High Court of Justice in an action to foreclose approximately $120 million in loans. The confirmation order restructured the loans following the lender’s exercise of an election under §1111(b) of the Bankruptcy Code. The lender immediately appealed. The representation of the Debtors was led by Harley E. Riedel, Charles A. Postler, and Daniel A. Fogarty.