Sea Island's Troubles And The PGA Tour

It's always a bit scary to post something about Sea Island since that idyllic little enclave seems to have its share of darkness within the confines (if you knew how many Holocaust denier posts I've had to delete from this 800 comment thread, my cynicism would be considered understated).

That said, a reader raises a good point in light of J. Scott Trubey and Maria Saporta's Atlanta Business Journal story about the latest bailout request by Bill Jones, who racked up a $500 million redo tab.

At a private 30-minute meeting with 500 members of the posh resort, Sea Island Chairman and CEO Bill Jones III, informed members that the company will hire a investment banking firm, and that the debt-riddled resort and golf community has reached a forbearance agreement with its lenders, including Synovus Financial Corp.-subsidiary Columbus Bank & Trust.

Under a forbearance agreement, the loan is technically in default, however, the bank has agreed to a grace period to help the borrower work through payment issues or exit. Under the agreement, the bank does not give up its rights to enforce the loan documents in full, which could include foreclosure or the pursuit of guarantors for repayment if any exist.

An attendee of the meeting told Atlanta Business Chronicle the meeting was not contentious and the company’s actions helped clarify the uncertainty that has surrounded Sea Island.

The attendee, who declined to be identified, said Jones, in his prepared remarks, told members the company is “optimistic” they will find “an investor or buyer with the financial strength to carry [the company’s] vision forward.”

The company, the source said quoting Jones, has labored to address its financial problems, “but now we know that we can’t dig out of this financial situation by ourselves.”

So a reader asks how, "if bankruptcy is a real possibility, why would the PGA Tour put a new event into the middle of a situation like this?  Serious sign of desperation?"