Five timeshare associations governing properties at the Fairfield Bay resort community in Arkansas filed chapter 11 on February 11, 2026, joining a coordinated liquidation of 14 Club Wyndham resorts announced in late 2025 by Travel + Leisure Co. The debtors—Mountain Ridge, Mountain Meadows, Cliffside Lodge II, Hamilton Cove, and The Fairways—collectively govern 205 timeshare units representing 10,660 individual interval ownership interests.
The cases were filed under Subchapter V in the U.S. Bankruptcy Court for the Eastern District of Arkansas following September 2025 member votes authorizing chapter 11 filings and sale efforts. In their first-day declarations, the debtors state that they carry no secured debt and anticipate paying claims in full. The primary purpose of the bankruptcy is to facilitate a Section 363(h) sale—a rarely used provision allowing the associations to sell their undivided interests jointly with the interests of thousands of individual interval owners who would otherwise need to consent to a partition.
The Fairfield Bay filings are part of a systematic liquidation of legacy timeshare properties across the Wyndham portfolio. In November 2025, Club Wyndham announced that ten resorts would cease operations by the end of 2025: Atlantic City, Bentley Brook, Branson at the Falls, Fairfield Bay, Fairfield Glade, Orlando International Resort Club, Newport Bay Voyage, Newport Overlook, Patriots' Place, and Shawnee. Four additional locations—Ocean Ridge, Pagosa, Star Island, and Fairfield Mountains—experienced partial closures through association consolidation.
Aging infrastructure. Industry analysis attributed the closures to aging infrastructure from the 1970s-1990s requiring expensive repairs and updates. HOA decisions at the affected properties determined that timeshare operations were financially unsustainable. Wyndham is pursuing corporate restructuring and portfolio consolidation focused on newer properties.
Coordinated bankruptcy filings. Multiple associations at closing properties filed chapter 11 to facilitate orderly liquidations through Section 363(h) sales. The Orlando International Resort Club Condominium Association filed in the Middle District of Florida on October 23, 2025. Three of eight HOAs at Club Wyndham Pagosa filed in mid-December 2025, holding 13 buildings with combined cash reserves of $5.4 million and $19 million in required repairs over six years. Bentley Brook in Massachusetts filed on January 10, 2026 following a November 19, 2025 member vote, facing $13.2 million in estimated capital projects.
Industry context. Average timeshare maintenance fees rose from $1,260 in 2023 to $1,480 in 2024, an approximately 17.5% increase. Over the five-year period from 2020 to 2024, maintenance fees increased 33% from $1,120 to $1,480—outpacing the 21% general inflation rate over the same period. The American Resort Development Association attributed the increases to inflation, rising insurance premiums (especially in disaster-prone areas), and catch-up from pandemic-era deferred maintenance. Total U.S. timeshare sales volume declined slightly from $10.6 billion in 2023 to $10.5 billion in 2024, while the total number of U.S. timeshare resorts and units declined by approximately 5% since 2020, attributed to strategic sunsetting of aging properties. Maintenance fees now account for approximately 83% of timeshare operating revenues industry-wide.
Fairfield Bay Timeshare Properties
The five debtor associations govern separate timeshare properties located within the Fairfield Bay resort community in Van Buren County, Arkansas. The property totals show 205 units and 10,660 unit weeks (intervals). Each property operates under an interval ownership model, where unit weeks—each representing a one-week stay per year in a specific unit—are sold to individual owners.
Property details. The property schedules list Mountain Ridge as five buildings with 60 units (3,120 intervals) at 100 Mountain Ridge Circle. The same schedules list Mountain Meadows as 16 villas (832 intervals) at 100 Pedestal Lane; Cliffside Lodge II as two buildings with 24 units (1,248 intervals) at 125 Chelsea Drive; Hamilton Cove as seven buildings with 37 units (1,924 intervals) at 1125 Dave Creek Parkway; and The Fairways as 17 buildings with 68 units (3,536 intervals) at 100 Fairways Drive.
Ownership structure. The ownership tables show PTVO Owners Association, Inc. (PTVO) holding the majority of intervals across all five properties, ranging from 50.60% to 57.69%. Wyndham Vacation Resorts, Inc. (WVR) holds 12.42% to 13.83% at each property, while individual interval owners hold 25.00% to 32.33%. Each association itself holds 1.92% to 3.85% as maintenance weeks.
Club Wyndham Access. The first-day declaration states that PTVO and WVR created the Club Wyndham Access multi-site timeshare program under a January 3, 2008 Club Declaration. It also says CWA may offer to acquire certain interval owners' interests, but the debtors are not parties to those transactions. All association members are also regular members of Fairfield Bay Community Club, Inc. (the "Master Association") and are obligated to make periodic payments to the Master Association.
Management structure. The management-agreement summary states that each association has an agreement with Vacation Resort Management, Inc. (formerly Wyndham Vacation Management, Inc.), an affiliate of WVR, with management fees calculated at 10% of common expenses assessed against owners. The filing reports 2025 management costs including Mountain Ridge ($237,093 in fees plus about $51,180 per month in reimbursed expenses), Mountain Meadows ($86,177 plus about $11,205 monthly), and Cliffside Lodge II ($102,564 plus about $16,346 monthly). Both the property manager and WVR are indirect subsidiaries of Travel + Leisure Co.
Inventory foreclosure agreements. Each debtor has an Inventory Foreclosure Agreement with WVR to handle delinquent interval owners. Under these agreements, WVR purchases "Delinquent Inventory" from the association and institutes foreclosure or deed-in-lieu proceedings, paying foreclosure costs in exchange for title to the delinquent intervals. As of December 31, 2025, Mountain Ridge had tendered 24 delinquent owners to WVR, of which WVR had filed five foreclosure actions. The associations intend to dismiss pending foreclosures in light of the bankruptcy.
Governance. The governance section lists each debtor as governed by a Board of Administrators or Board of Directors. Mountain Ridge's board consists of Michael Friedman (President), Pete Reyes (Vice President), and Terry McClain (Secretary/Treasurer). Mountain Meadows' board consists of Joey Alkire (President), Randy Anderson (Vice President), and Heather Blevins (Secretary/Treasurer). Cliffside Lodge II's board consists of Joey Alkire (President), Jennifer Brown (Vice President), and Amy Moriarity (Secretary/Treasurer). Hamilton Cove's board includes Ladd Marks (President).
Path to Liquidation
The associations filed for bankruptcy to facilitate the sale of all five properties free and clear of the interests of all association members, pursuant to Section 363(h). The first-day filings identify core drivers as declining occupancy, deferred capital expenditures, rising maintenance fees, and maintenance-fee delinquencies.
Declining occupancy. The occupancy data shows Mountain Ridge at about 27.0% in 2024 and 18.7% in 2025; Mountain Meadows at about 47.0% in 2024 and 32.2% in 2025; and Cliffside Lodge II at about 33.5% in 2024 and 35.9% in 2025.
Deferred capital expenditures. The 2025 reserve studies describe near-term capital needs: about $5.1 million at Mountain Ridge from 2026 through 2028; about $1,687,518 at Cliffside Lodge II in 2026 alone (plus a pending $600,000 special assessment in January 2026); and about $2,085,368 at Mountain Meadows in 2027. The same studies report 2025 reserve contributions of $603,883 at Mountain Ridge, $270,412 at Cliffside Lodge II, and $303,223 at Mountain Meadows.
Rising maintenance fees. The fee schedules show Mountain Ridge at $838.40 in 2025 and forecasted $881.89 in 2026 (plus a $2.2 million special assessment), Cliffside Lodge II at $908.56 in 2025 and forecasted $969.96 in 2026 (plus the $600,000 special assessment), and Mountain Meadows at $1,104.76 in 2025 and forecasted $1,159.36 in 2026.
Maintenance fee delinquencies. As of December 31, 2025, the delinquency totals were $480,211.77 at Mountain Ridge (171 interval owners), $108,218.16 at Cliffside Lodge II (49 interval owners), and $200,167.40 at Mountain Meadows (49 interval owners).
Member authorization. At membership meetings held in September 2025, members voted to authorize chapter 11 filings and sale processes. Mountain Ridge reported September 25, 2025 vote results of 99.76% for filing and 99.66% for the operations-suspension package. Cliffside Lodge II reported September 24, 2025 vote results of 99.77% for filing and 99.89% for the operations-suspension package. Mountain Meadows' declaration reports 99.44% approval for filing and suspension-related actions.
Operations suspension. The operations-suspension terms state that all five properties suspended occupancy as of December 27, 2025, or shortly thereafter. The same filing says boards were authorized to suspend occupancy and 2026 maintenance-fee collection, waive reserve funding in the 2026 budget, refund any 2026 maintenance fees already received, cancel reservations with occupancy dates after December 27, 2025, and transfer reserve balances to pay 2026 operating expenses under a limited operations budget.
Subchapter V Liquidation Strategy
The debtors' primary strategy is to sell all five properties free and clear of all interests of association members, pursuant to Section 363(h). All five cases were filed under Subchapter V, which provides an expedited and less costly process for small business reorganizations. The Subchapter V plan deadline is May 12, 2026.
Section 363(h) sale mechanics. Section 363(h) allows the sale of an undivided interest in property notwithstanding that a co-owner has not consented to the sale, functioning as a bankruptcy-enabled partition sale. The first-day declaration states that without this provision, the associations would need consent from thousands of interval owners to sell the properties, and the debtors plan to seek approval to sell debtor and non-debtor interests jointly.
Joint marketing approach. The marketing strategy disclosure says the properties are intended to be sold together as a single lot, while still allowing offers for individual properties. The debtors indicate they intend to file a bidding procedures motion and may designate a stalking horse bidder to establish a floor price. Hilco Real Estate, LLC was identified as the real estate broker to market the properties.
No secured debt; full creditor payment. The first-day declarations state that the debtors carried no secured debt as of the petition date. The filings describe liabilities as primarily maintenance-and-operations related and state that each debtor anticipates paying claims in full. Aggregate estimated prepetition taxes owed across all five debtors total approximately $320,231, consisting primarily of income taxes and real/personal property taxes. The debtors have no direct employees and incur no payroll or employment-related taxes. Net sale proceeds (after costs of administration and sale) plus remaining cash and reserves will be distributed pursuant to a confirmed plan of liquidation.
Substantial cash reserves. The cash balances disclosure reports that as of January 31, 2026, Mountain Ridge had $2,781,096.37, Cliffside Lodge II had $1,663,363.21, and Mountain Meadows had $2,110,835.31, for at least $6.6 million across those three debtors. No DIP financing was requested in the first-day filings. The debtors maintain comprehensive insurance coverage purchased through Travel + Leisure Resort Development, Inc., with aggregate premiums of approximately $307,000 in the 12 months before the petition date and directors-and-officers coverage of up to $5 million per association through HDI Global Specialty SE.
Timeshare plan termination. The debtors will seek authorization to terminate or amend the timeshare plans for each property effective at or prior to closing. Each association will be dissolved following sale and distribution. Distribution to association members may be subject to set-off of amounts owed for delinquent maintenance fees and special assessments.
Professional retentions. The retention and service filings identify K&L Gates LLP (Charles T. Coleman) as debtor counsel and Omni Agent Solutions as proposed notice, claims, and solicitation agent for approximately 6,122 interval owners and other parties in interest across the five cases. First-day filings also identify Hilco Real Estate as real estate broker.
Subchapter V mechanics. Subchapter V took effect on February 22, 2020 with a standard debt threshold of $2,725,625 in aggregate secured and unsecured debts (temporarily increased to $7.5 million during the CARES Act period). Only the debtor can propose a plan under Subchapter V, with a 90-day exclusivity period. Disclosure statement court approval is not required. The absolute priority rule is eliminated, allowing owners to retain equity without full creditor payment if disposable income is contributed for 3-5 years. Administrative expenses can be spread over the plan term versus immediate payment.
Early Case Developments
Several procedural milestones were addressed within two weeks of the February 11 petitions.
Joint administration. The court authorized joint administration on February 17, 2026, directing all filings to proceed on lead docket Case No. 4:26-bk-10474. The order states that the five debtors remain separate estates and that consolidation is administrative rather than substantive. Proofs of claim must be captioned and filed in the specific estate to which they apply, preserving entity-level claim treatment.
Judge assignment and first-day orders. On February 18, 2026, Judge Richard D. Taylor was assigned to all five cases, replacing initially assigned judges in the individual member cases. The same day, the court entered orders granting the debtors' motions to continue administering insurance policies and to pay prepetition taxes of approximately $320,231 in aggregate. Both orders authorize but do not direct payment, preserving the debtors' discretion. Three K&L Gates attorneys—Brandy A. Sargent, Jonathan N. Edel, and Daniel M. Eliades—were admitted pro hac vice on February 19 to practice before the Eastern District of Arkansas.
U.S. Trustee objection. On February 19, 2026, the U.S. Trustee for Region 13 filed an objection to the debtors' cash management motions, asserting that the debtors' "Reserve" and "Investment" accounts held with Ameriprise Financial, LLC—totaling over $15 million—are not FDIC-insured or otherwise compliant with 11 U.S.C. § 345(b). The U.S. Trustee argues the debtors have not shown sufficient cause to waive § 345(b) requirements, noting that the debtors are liquidating assets rather than reorganizing and that their business operations are minimized. The objection cites the In re BlockFi, Inc. case, where BlockFi faced potential loss of $227 million when Silicon Valley Bank failed because funds were not properly collateralized. The U.S. Trustee requests the court deny the cash management motions.
Creditor appearances and schedule filings. Fairfield Bay Community Club, Inc.—the master association to which all interval owners owe periodic payments—filed a notice of appearance as a creditor through Luther Oneal Sutter II, and several individual interval owners entered appearances requesting notice of all proceedings. Amended schedules of assets and liabilities, statements of financial affairs, and related filings were filed for multiple debtors on February 25, meeting the deadline set by the court's deficiency order. The Subchapter V plan deadline remains May 12, 2026.
Fairfield Bay History
The Fairfield Bay resort community traces its origins to 1965, when Fairfield Communities Land Company purchased 3,500 acres from Nebraska Tie and Lumber Company near Greers Ferry Lake in Van Buren and Cleburne Counties, Arkansas. The company was co-founded by George Jacobus, Neal Simonson, and Randolph Warner. Greers Ferry Dam had been dedicated by President John F. Kennedy on October 3, 1963—his last major public appearance before his assassination on November 22, 1963.
Post-bankruptcy restructuring. FCI emerged from chapter 11 in September 1992 with $91 million in sales, $7.1 million in profit, 14 resorts, and 130,000+ members. The city of Fairfield Bay was incorporated on July 29, 1993 following the bankruptcy. FairShare Plus (post-1992) introduced a point-based system allowing flexible stays across resorts, replacing rigid one-week intervals. By 1999, FCI reported about $491.73 million in sales, 33 resorts, about 280,000 member families, and 5,500 employees.
Recent Wyndham activity. In March 2022, Wyndham sold 2,032 vacant lots to the Fairfield Bay Resort Board for $10 (a nominal amount to satisfy Arkansas law). The assessed value was $3.4 million, representing approximately 20% of actual market value. Negotiations began 17 months before the March 2022 announcement. Approximately 10 lakefront properties were potentially valued at $100,000-$120,000 each. The sale did not affect Wyndham's resort operations or timeshare business in Fairfield Bay. A separate Wyndham resort, Fairfield Glade in Cumberland County, Tennessee, also closed timeshare operations at the end of 2025 as part of the same portfolio restructuring, resulting in 88 layoffs.
Litigation. A class action lawsuit, Jackson v. Wyndham Destinations Inc., Case No. 71CV-19-36, was filed in Van Buren County Circuit Court in March 2019. Plaintiff Gordon Jackson alleged Wyndham sold approximately 300 lots at Fairfield Bay while imposing a $30 monthly club membership fee, collecting an estimated $3.24 million over an average 30-year ownership period. Claims included breach of fiduciary duty, unjust enrichment, constructive fraud, and common law fraud against Wyndham. Jackson alleged Wyndham promised improvements to roads, water, electricity, and other infrastructure utilities that were never completed.
Frequently Asked Questions
What is the Bay Cliffside Lodge II Council of Co-Owners bankruptcy case?
Five Fairfield Bay associations filed chapter 11 on February 11, 2026 to facilitate a Section 363(h) sale structure described in first-day declarations. The cases were filed under Subchapter V following September 2025 member votes authorizing filing and sale steps. The debtors state that they carry no secured debt and anticipate paying claims in full.
How many properties and interval owners are affected?
Property schedules show the five associations collectively govern 205 timeshare units representing 10,660 interval interests. Unit counts are Mountain Ridge 60 (3,120 intervals), Mountain Meadows 16 (832), Cliffside Lodge II 24 (1,248), Hamilton Cove 37 (1,924), and The Fairways 68 (3,536). The same schedules show PTVO holding roughly 50.60%-57.69%, Wyndham Vacation Resorts roughly 12.42%-13.83%, and individual interval owners roughly 25.00%-32.33%.
Why did the associations file for bankruptcy?
The filings were driven by declining occupancy (including 18.7% at Mountain Ridge in 2025), deferred capital expenditures ($5.1 million at Mountain Ridge, $2.1 million at Mountain Meadows, $1.7 million at Cliffside Lodge II), rising maintenance fees, and maintenance fee delinquencies (approximately $788,597.33 across Mountain Ridge, Cliffside Lodge II, and Mountain Meadows).
Are the Fairfield Bay closures part of a broader Wyndham portfolio restructuring?
Yes. In November 2025, Club Wyndham announced that ten resorts would cease operations by the end of 2025: Atlantic City, Bentley Brook, Branson at the Falls, Fairfield Bay, Fairfield Glade, Orlando International Resort Club, Newport Bay Voyage, Newport Overlook, Patriots' Place, and Shawnee. Four additional locations experienced partial closures through association consolidation. Multiple associations at closing properties filed chapter 11, including Orlando International Resort Club (October 2025), Pagosa (December 2025), and Bentley Brook (January 2026).
What is a Section 363(h) sale?
Section 363(h) allows the sale of an undivided interest in property notwithstanding that a co-owner has not consented to the sale—functioning as a bankruptcy-enabled partition sale. Without this provision, the associations would need the consent of thousands of individual interval owners to sell the properties. The debtors will seek court approval to sell their interests jointly with the interests of all association members. The properties are intended to be marketed and sold together as a single lot, though offers for individual properties will also be considered.
What happened to Fairfield Bay operations?
Operations-suspension orders state that all five properties suspended occupancy as of December 27, 2025, or shortly thereafter. The same filings say boards were authorized to suspend 2026 maintenance-fee collection, waive reserve funding in the 2026 budget, refund any 2026 maintenance fees already received, and cancel reservations with occupancy dates after December 27, 2025.
What options do interval owners have?
Club Wyndham announced that owners at transitioning resorts receive two options: exchange current inventory for equivalent Club Wyndham Access points at no cost, or receive their share of sale proceeds from the property. Net sale proceeds (after costs of administration and sale) plus remaining cash and reserves will be distributed pursuant to a confirmed plan of liquidation. Distribution to association members may be subject to set-off of amounts owed for delinquent maintenance fees and special assessments.
Is this the first bankruptcy involving Fairfield Bay?
No. Fairfield Communities Incorporated, the original developer, filed chapter 11 bankruptcy on October 3, 1990 with $370 million in debt—the largest filing in Arkansas history at the time. FCI emerged from chapter 11 in September 1992 with 14 resorts and 130,000+ members. The city of Fairfield Bay was incorporated on July 29, 1993 following the bankruptcy. FCI introduced timeshare week-based vacation home purchases in 1979 at Fairfield Bay and was later acquired by Cendant Corporation in 2001 for approximately $690 million.
Has the U.S. Trustee raised any objections?
Yes. On February 19, 2026, the U.S. Trustee for Region 13 filed an objection to the debtors' cash management motions, asserting that over $15 million in "Reserve" and "Investment" accounts held with Ameriprise Financial are not FDIC-insured or otherwise compliant with 11 U.S.C. § 345(b). The U.S. Trustee requests the court deny the motions.
What professional fees are involved in the case?
K&L Gates LLP (Charles T. Coleman) serves as debtor's counsel. Three additional K&L Gates attorneys were admitted pro hac vice on February 19, 2026. Service-agent filings identify Omni Agent Solutions as proposed notice, claims, and solicitation agent for approximately 6,122 interval owners and other parties in interest across the five cases. First-day declarations identify Hilco Real Estate as broker. The debtors hold at least $6.6 million in aggregate cash across Mountain Ridge, Cliffside Lodge II, and Mountain Meadows as of January 31, 2026.
Who is the claims agent for Bay Cliffside Lodge II Council of Co-Owners?
Omni Agent Solutions serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
admitted pro hac vice /documents/cbdeebff-51ba-4304-941d-610662a0c48a/
filed an objection /documents/138f66fa-a765-4295-bb88-469e5ec4168d/
liquidation of 14 Club Wyndham resorts https://clubwyndham.wyndhamdestinations.com/us/en/resorts/resort-news/2025/your-resort-portfolio-refresh
Section 363(h) sale https://www.mvalaw.com/alert-Considering-the-Small-Business-Reorganization-Act-2020
cruise lines retiring ships or airlines decommissioning planes https://clubwyndham.wyndhamdestinations.com/us/en/resorts/resort-news/2025/important-resorts-update
aging infrastructure from the 1970s-1990s requiring expensive repairs and updates https://www.consumerguardiangroup.com/blog/what-you-need-to-know-about-recent-wyndham-timeshare-resort-closures
Orlando International Resort Club Condominium Association filed https://whatnow.com/orlando/local-news/orlando-timeshare-association-files-chapter-11-bankruptcy/
Club Wyndham Pagosa filed https://businessden.com/2026/02/05/pagosa-springs-timeshares-go-bankrupt-will-sell-their-13-resort-buildings/
Bentley Brook in Massachusetts filed https://www.berkshireeagle.com/business/club-wyndham-bentley-brook-closing-sale/article_df85156a-ae70-459f-bc8c-8aae1216073f.html
from $1,260 in 2023 to $1,480 in 2024 https://resorttrades.com/arda-2025-state-of-the-vacation-timeshare-industry/
bankruptcy-enabled partition sale https://www.abi.org/abi-journal/section-363h-sales-and-co-owners-cautionary-tales-from-the-cases
3,500 acres from Nebraska Tie and Lumber Company https://encyclopediaofarkansas.net/entries/fairfield-bay-van-buren-and-cleburne-counties-1002/
introduced in 1978 https://www.fundinguniverse.com/company-histories/fairfield-communities-inc-history/
Cendant Corporation announced acquisition on November 2, 2000 https://www.hotelnewsresource.com/article2595.html
reported $690 million https://www.buyatimeshare.com/wyndham-timeshare-history.asp
Wyndham Destinations was renamed Travel + Leisure Co. in 2021 https://clubwyndham.wyndhamdestinations.com/us/en/resorts/resort-news/2025/parent-company-updates
sold 2,032 vacant lots https://www.thecabin.net/vanburen/wyndham-divests-thousands-of-lots-to-fairfield-bay/article_4f84332b-e49b-5895-9178-811b062c7775.html
Fairfield Glade in Cumberland County, Tennessee https://www.crossville-chronicle.com/news/glade_sun/club-wyndham-closing-timeshare-operations-in-fairfield-glade/article_a748ba2a-1f72-476e-b0a3-be55354548e0.html
Jackson v. Wyndham Destinations Inc., Case No. 71CV-19-36 https://topclassactions.com/lawsuit-settlements/consumer-products/wyndham-class-action-says-club-membership-worthless/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.