Lawyers Declare Sea Island Auction A Success... For Themselves!

Only people charging $700 an hour could concoct something like this for the Sea Island sale of $212.4 million, up from the original $197.5. Carrick Mollenkamp reports:

In an unexpected twist, the four firms acquiring the assets include two—Oaktree Capital Management LP and Avenue Capital Group—that had submitted a winning bid of $197.5 million in August. But the bankruptcy process left the door open for an auction and Anschutz Corp. and Starwood Capital Group Global now will join Oaktree and Avenue in the purchase of the assets.

Anschutz and Starwood had been seen as competing bidders for Sea Island's assets, not as partners with Oaktree and Avenue. But during the course of the auction Monday, a joint bid materialized. A break-up fee of nearly $6 million is waived.

Under terms of a pact that must be finalized, an Oaktree-Avenue partnership will now buy the assets with an Anschutz-Starwood partnership.