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Specializing in insolvency and complex commercial matters since 1974

Scrub Island Development Group Limited And Scrub Island Construction Limited File For Relief Under Chapter 11 - November 19, 2013

On November 19, 2013, Stichter Riedel filed Voluntary Petitions for relief under Chapter 11 of the Bankruptcy Code for Scrub Island Development Group Limited (“SIDG”) and Scrub Island Construction Limited. SIDG owns Scrub Island, which is a 230-acre island located in the British Virgin Islands consisting of Little Scrub Island and Big Scrub Island. SIDG owns the Scrub Island Resort, Spa & Marina, which is an award-winning boutique luxury resort and hotel property located on Little Scrub Island that is part of the prestigious Marriott Autograph Collection Hotel system. See www.scrubisland.com. In the reorganization cases, the companies will seek to restructure secured and unsecured debt in excess of $100 million, including mortgage debt in favor of FirstBank Puerto Rico that was the subject of an enforcement proceeding brought by FirstBank in The Eastern Caribbean Supreme Court in the High Court of Justice in the British Virgin Islands shortly before the chapter 11 filings. The firm’s representation of the Debtor was led by Charles Postler and Harley E. Riedel.