ANGUILLA Starwood Capital Group is reportedly close to acquiring the 166-key Viceroy Anguilla resort in a bankruptcy auction.
Owners of the luxury Caribbean property, a partnership between Viceroy Hotels & Resorts and Lubert-Adler Real Estate Funds, is planning a bankruptcy filing in Delaware, according to a Wall Street Journal report. Starwood Capital, which is Viceroy Anguilla’s largest unsecured creditor, would then attempt to take over the resort.
The property is worth less than the debt owed, according to the Journal. Viceroy opened more than a year behind schedule in 2009, which allowed villa buyers to opt out on closing their real estate purchases.
Under Anguilla law, Starwood Capital is not allowed to foreclose on the property. Instead, the bankruptcy filing in the United States would allow the property to be put up for public auction.
If Starwood Capital successfully acquires the resort, it would continue to be flagged and operated by Viceroy, the Journal reports.