U.S. Bankruptcy Judge K. Rodney May will allow a $23 million judgment auction to the Colony’s Trustee to move forward later this summer.

The Colony

by: Kurt Schultheis

U.S. Bankruptcy Judge K. Rodney May approved an emergency motion from Colony Beach & Tennis Resort Chapter 7 Trustee William Maloney this afternoon that allows him to move forward with bids and an auction for a $23 million judgment against unit owners this summer.

Maloney, who doesn’t foresee a settlement among Colony parties, and his attorney, Jordi Gusso, urged May to move forward with procedures that could lead to an August auction of a judgment that longtime Colony owner Dr. Murray “Murf” Klauber won on appeal against unit owners.

Maloney seeks to sell the judgment to Unicorp National Development President Chuck Whittall, which offered $3.5 million for the judgment, or a higher bidder with a better offer at auction. Maloney and Whittall, who already submitted a $200,000 deposit for his offer, have already signed a contract for the judgment.

“In the face of a $3.5 million cash offer, it’s appropriate to bring this forward to you,” Gusso said.

Gusso asked for a bid process for other parties to compete with Whittall’s offer that included the following parameters: an all-cash offer and a deposit that would amount to 10% of the amount of the total bid. The first available bid above Unicorp’s, Gusso said, should be set at $3.6 million.

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