Categorized | Business

New Hokulia owners fund $20M for Mamalahoa bypass

MEDIA RELEASE

On June 3 2014, an affiliate of Sun Kona Finance I LLC, the investment firm that acquired Bank of Scotland’s loans to the long‐stalled Hokulia project took the unusual opportunity to pay 1250 Oceanside’s obligation to the County before the effective date of bankruptcy exit plan which is scheduled for later in June. Sun Kona paid the County of Hawaii $20 million plus accrued interest.

“Once the Federal Bankruptcy Court approved our bankruptcy exit plan, we chose to pay the County of Hawaii immediately and honor our commitment as early as possible,” stated Sun Kona president Craig Pickett. “Our strategy at Sun Kona has always been to fulfill the unmet obligations of prior owners to the County of Hawaii and the West Hawaii community. Our payment today will facilitate the completion of the long delayed Mamalahoa Bypass Highway.”

Sun Kona Finance 1 LLC and Debtors 1250 Oceanside Partners, Pacific Star Company LLC, and Front Nine’s Joint Consolidated Plan of Reorganization under Chapter 11 was approved in April by the United States Bankruptcy Court Judge Robert J. Faris in Hawaii to be effective late May.

The approved Reorganization Plan allows the stalled Hokulia project to emerge from bankruptcy and permit the respective creditors to receive payments on a proportional basis to their claims from a newly formed Unsecured Creditors Fund.

“It has always been my intention to protect the public’s interest and complete the Mamalahoa Bypass road,” Mayor Billy Kenoi said. “I am very happy with this outcome and I commend Sun Kona for paying this obligation ahead of schedule. The County is moving full steam ahead with construction of the Mamalahoa Bypass slated to begin later this summer.”

Sun Kona Finance I LLC acquired Bank of Scotland’s loans in late 2012 and Craig Pickett was installed to manage the Debtor entities. In order to resolve secured and unsecured debt in accordance with the Bankruptcy Code, 1250 Oceanside and its affiliates commenced Chapter 11 bankruptcy proceedings in March 2013.

Last May, the Bankruptcy Court authorized the Debtors to appoint long‐time Kona resident G. Rick Robinson as Chief Restructuring Officer.

Robinson has been actively involved in the development of the Restructuring Plan and will be administering the Unsecured Debtors Fund.

The Development, Cultural and Community Plan submitted with the reorganization plan affirmed the historical and cultural significance of these South Kona lands.

The Plan addressed the protection of cultural and historic sites, access rights of lineal and cultural descendants, the establishment of agricultural and cultural preserves and the importance of working collaboratively with Hawaii’s State Historic Preservation Division, descendants and others.

West Hawaii’s community needs are also addressed within the Development, Cultural and Community Plan. The approved Restructuring Plan also includes community contributions of well over $1.5 million to assist with construction of affordable housing, drug abuse prevention and scholarship initiatives.

Hokulia Entities
Debtors in Bankruptcy

· 1250 Oceanside Partners, the developer of Hokulia owns lots and the remaining undeveloped areas.
· Front Nine LLC owns lots at Hokulia
· Pacific Star Company LLC is the owner of the adjoining Keopuka property

All three entities are in bankruptcy, have limited or no activities, and are not conducting any construction work.

There are a number of associations within the Hokulia Development that do not fall under Sun Kona, Oceanside, Front Nine or Pacific Star including The Club at Hokulia, Hokulia Community Association, Hokulia Park and Cultural Sites Association. These are not in bankruptcy, are controlled by various individual lot owners and have independent management and boards of directors.

The Club at Hokulia controls the golf course and amenities, Hokulia Community Association is in charge of the subdivision’s common areas and the Hokulia Park and Cultural Sites Association controls and manages the shoreline park, historic sites, burials and trails.

Sun Kona Venture, LLC, the entity that controls Sun Kona Finance I LLC, is owned by two prominent investors, William A. Pope, owner and President of SunChase Holdings and Samuel Robson (Rob) Walton, through one of his entities, Lake Avenue Investments, LLC. Mr. Walton is the Chairman of the Board of Directors of Walmart.

SunChase Holdings, Inc. has invested, traded and operated extensive real estate holdings and has provided business capital to companies for over 20 years.

SunChase has an extensive history of managing distressed real estate assets and loans both for itself and for third parties. The majority of SunChase projects are owned by the company; however certain of the projects include third party investors.

2 Responses to “New Hokulia owners fund $20M for Mamalahoa bypass”

  1. Jonathan says:

    This development has not and is not following the laws they are polluting our ocean air and land they do not provide appropriate access to the descendants and the land is coated in round up so much that my sons legs are covered with sores after being down there for only 1 hr his legs touched weeds and he broke out with a Rask covering 60% of his legs. This type of development is not good for anyone except the developer who will lie cheat and steal to make a deal !

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