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No matches found.SkySail developer files bankruptcy
The developer of SkySail Condominiums, the luxury units next to the Hilton in downtown New Bern, has filed for Chapter 11 bankruptcy to “reorganize its finances and operations,” according to an attorney for the Soleil Group.
New Bern Riverfront Development LLC filed bankruptcy just days ago. The corporation’s lawyer, Rod O’Donoghue, said Tuesday that a troubled economy, changes in financing for buyers, and a dispute–turned-lawsuit involving the project’s general contractor have all “hampered” condo sales on Middle Street.
O’Donoghue is both the registered agent for the limited-liability corporation that filed bankruptcy and the lawyer for the Cary-based Soleil Group. Developers Dicky Walia and Sanjay Mundra are the masterminds behind both the Soleil Group and the SkySail Condominiums.
The Soleil Group has said its investments in downtown New Bern amount to more than $60 million, including the renovated Sheraton-turned-Hilton hotel, the revamped New Bern Grand Marina and the luxury condominiums.
The bankruptcy does not affect the hotel or the marina, O’Donoghue said. All requests for comment were directed to him, and the attorney responded in an e-mail.
“The recent filing is viewed as a positive step for the ultimate success of SkySail Condominium(s) and, in turn, for downtown New Bern,” O’Donoghue said.
O’Donoghue said the lawsuit involving the contractor “will take some time to be resolved, and, in the meantime, interferes with the sale of the remaining completed units.” No further details of that lawsuit were immediately available Tuesday.
Chapter 11 bankruptcy allows New Bern Riverfront Development LLC to reorganize itself and work out a plan to repay its lenders and creditors while staying open. Chapter 7 bankruptcy would have forced the corporation to close.
O’Donoghue also indicated the purpose of the Chapter 11 filing was to “allow the sale of completed units without undue delay.”
“This is not an action that was taken lightly or hastily, but after careful consideration of all options,” O’Donoghue said. “New Bern Riverfront believes there is substantial equity in SkySail and that SkySail is a valuable and viable project.”
Nikie Mayo can be reached at 252-635-5665 or nmayo@freedomenc.com.
