6:03 am August 11, 2010, by Henry Unger
Today’s major business story in Georgia concerns the bankruptcy of a famous resort — the site of the G-8 Summit of world leaders in 2004.
Sea Island Co., operator of the Georgia coastal resort since the 1920s, will file for bankruptcy protection today and announce a deal to sell most of its assets, AJC staffers Scott Trubey and Dan Chapman report.
The buyers are investment firms Oaktree Capital Management of Los Angeles and Avenue Capital Group of New York, Sea Island Chairman Bill Jones III said in an e-mail late Tuesday to residents of the resort’s gated community.
A partnership formed by funds run by Oaktree and Avenue will pay a bargain-basement price of $197.5 million if the deal is approved in the bankruptcy process, a person familiar with the deal told the reporters.
Sea Island Co. includes The Cloister at Sea Island and the Lodge at St. Simons, along with residential and golf properties.
For most of its history the resort near Brunswick has been a favored vacation spot among affluent southerners, including many from metro Atlanta, along with occasional celebrities, the reporters write.
The sell-off and bankruptcy follow a disastrously ill-timed bid to push the resort deeper into the luxury stratosphere, Trubey and Chapman report.
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