Daily News: November 21, 2013

Bloomberg: Resort Seeks Chapter 11 to End “Secretive” Lender Receivership

Bloomberg reported Scrub Island Development Group, owner of a British Virgin Islands luxury resort, sought bankruptcy protection to end a receivership it claims was secretly put in place by its lender.

Bloomberg said the company listed debt and assets of more than $100 million each in Chapter 11 documents filed in U.S. Bankruptcy Court in Tampa, FL, and that FirstBank Puerto Rico, the company’s lender, is owed about $108 million. The resort operator says in court documents that FirstBank initiated a “highly secretive appointment” of a temporary receiver of the Scrub Island Development Group’s assets without prior notice to the company or its lawyers, Bloomberg reported further.

To read the entire Bloomberg article, click here.