POSTED: 1:30 a.m. HST, Aug 17, 2013
LAST UPDATED: 1:56 a.m. HST, Aug 17, 2013
KAILUA-KONA » The creditor and debtors of the bankrupt Hokulia luxury development on Hawaii island have come up with a reorganization plan they say will revive the long-stalled development and ensure the county gets $20 million to complete the Mamalahoa bypass road.
A hearing on the plan is scheduled for Sept. 16 at U.S. Bankruptcy Court, West Hawaii Today reported Friday.
Phoenix-based developer Lyle Anderson had planned to develop Hokulia in three phases on more than two square miles in South Kona. It was to include about 730 residential lots, a 27-hole golf course and clubhouse, and other facilities. It was also to include a public bypass road that would run along the coastline from Napoopoo to Kailua-Kona.
But the project ran into multiple major setbacks, leading to bankruptcy.
The creditor is investment firm Sun Kona Finance I LLC, which bought debt owned by Anderson's lender, the Bank of Scotland.
The debtors are 1250 Oceanside Partners, development company Pacific Star Co. and Front Nine. Together they have $68 million in assets but liabilities of $646 million.
"We have a restructuring plan and financing in place that, once approved by the court, will transform Hokulia," Craig Pickett, manager of debtor entities for Sun Kona Finance I, said in a statement.