A United States bankruptcy judge has approved a reorganisation plan that would take Scrub Island Resort out of bankruptcy and allow it to receive an infusion of new capital to fund improvements, court documents show.
On Tuesday, Judge Michael Williamson ordered the plan to be implemented in spite of multiple objections from FirstBank Puerto Rico.
Mr. Williamson’s decision could pave the way for the end of a cross-border legal battle between the resort’s owners, the Scrub Island Development Group, and the bank, which claims it is owed nearly $120 million in overdue loan payments.
But while the judge ordered that the plan should move forward, a higher US court may have the final say: On Monday, the bank filed notice that it will appeal Mr. Williamson’s decision.
Resort representatives declined to be interviewed for this article, and bank representatives did not respond to calls seeking comment.
See the Jan. 29, 2015 edition for full coverage.
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