Jacksonville Bankruptcy Judge Gives Sawgrass Marriott Owners More Time
A U.S. Bankruptcy Court judge in Jacksonville gave the owners of the Sawgrass Marriott Golf Resort & Spa in Ponte Vedra Beach a win in the first round of their foreclosure fight with Goldman Sachs Mortgage Co. in late June.
The judge denied Goldman Sachs’ motion to proceed with the foreclosure, granting RQB Resort LP and RQB Development RP another six months to file a reorganization plan and approving the hiring of an investment firm to search for investors to raise capital.
RQB filed for Chapter 11 bankruptcy protection last March; it currently owes Goldman Sachs $193 million. Goldman Sachs told the bankruptcy court that they believe the Sawgrass Marriott is worth significantly less than the $220 million purchase price, and that the resort has not been generating sufficient revenue to service its debt.
RQB management has said that while revenue was down 25 percent in 2009, the resort remained profitable. Sawgrass Marriott general manager Jeff Mayers said that normal operations are continuing as usual.
The Sawgrass Marriott is adjacent to the TPC Sawgrass Players Stadium golf course, where The Players Championship is played every May, as well as the Dye’s Valley Course, which will host another PGA event in October. Neither of these facilities is involved in the Sawgrass Marriott Jacksonville bankruptcy case.
Greg Gilbert
Keith Maynard
