Sea Island Sold For $179.5 Million

WSJ's Carrick Mollenkamp and Lingling Wei report that investors are walking away from $340 million in debt. Thanks to reader Stone for this:

As part of a pact expected to be announced Wednesday, funds managed by Oaktree Capital Management LP of Los Angeles and Avenue Capital Group in New York have agreed to pay $197.5 million in cash for Sea Island. Under the deal, Sea Island also is expected to seek bankruptcy-court protection Wednesday.

The 84-year-old resort is famed for its Cloister hotel, four golf courses, exclusive clubs, a private development called Ocean Forest Golf Club, and hosting a Group of Eight summit in 2004. Sea Island hit a financial wall when it couldn't repay debt taken on by Bill Jones III, the company's chief executive and the fourth generation of his family to lead Sea Island, as part of a $395 million renovation and expansion of the resort in 2006 and 2007.