Colony Beach & Tennis Resort Lender, Unicorp face sanctions
by: Kurt Schultheis via Yourobserver.com
U.S. Bankruptcy Judge K. Rodney May has dealt a blow to Orlando-based Unicorp National Development Inc. in its quest to redevelop the Colony Beach & Tennis Resort.
May revealed Tuesday in his Tampa courtroom that he plans to file an order against Colony Lender LLC and Orlando-based Unicorp National Development Inc. for a list of sanctions.
After he finalizes and enters his order, Colony Lender will have 14 days to dismiss lawsuits it filed in state court against all Colony unit owners. Colony Lender and Unicorp sought more than $5 million in damages for unpaid rent plus interest on a disputed recreational facilities lease. May ruled last month that those letters violated an automatic bankruptcy stay.
“There will be no further steps to collect,” May said.
May also is requiring Colony Lender LLC principals David Siegal and Randy Langley, along with Unicorp President Chuck Whittall, to write a letter to every unit owner on official company letterhead that includes their names, stating that the claims against them are being dismissed.
And five unit owners who sold their units to Unicorp last year for $20,000 each after receiving demand letters in August stating they could face millions of dollars in liabilities if they did not sell their units to Unicorp, will have a 30-day period to get their units back.
Liens Colony Lender and Unicorp placed on units for rent will be removed as part of the pending order.