FORT MYERS — The developer of the Naples Bay Resort may be forced into bankruptcy.
On Wednesday, creditors filed an involuntary petition for Chapter 7 bankruptcy against the developer, Basil Street Partners, in federal court in Fort Myers. The filing comes as a court-appointed receiver for the project is searching for new financing to keep the resort operating because it's not making enough money to pay all of the bills.
An emergency hearing on the bankruptcy petition is scheduled for 3:30 p.m. today.
Well-known developer Jack Antaramian, who was a partner in Basil Street Partners, is one of the creditors filing the petition. He had no comment.
According to court documents, the creditors want a court-appointed receiver, Gerard McHale, a forensic accountant in Fort Myers, to continue managing and operating the resort, which would require a judge’s approval if the bankruptcy moves ahead.
The other creditors behind the petition are Young Van Assenderp PA, Turrell, Hall & Associates Inc. and Forge Engineering Inc. The claim amounts exceed $96,000. Young, Turrell and Forge have liens on the mortgaged property.
Antaramian has taken over the mortgage on the property and is foreclosing.
According to the bankruptcy filing, McHale, the receiver, has considered selling the property, but continuing losses have prevented that from happening.
Though business is improving, the resort has not been able to generate enough income to cover all of the expenses. The creditors claim "no other source of funds is available to the receiver outside of bankruptcy" to cover the shortfall.