Maple Ridge Property Owners Association: Timeshare Resort Liquidation Under Subchapter V

Maple Ridge Property Owners Association, a North Carolina not-for-profit corporation formed in 1985 to operate a 40-unit timeshare resort in Lake Lure, filed a chapter 11 Subchapter V petition on November 25, 2025, in the Western District of North Carolina. The filing followed a special meeting at which more than 99% of the voting interests present authorized the board to pursue a bankruptcy sale of the property free and clear of co-owner interests. The Hilco retention application states directly that the debtor filed the case "for the purpose of liquidating the Property."

The case is structured as a controlled liquidation rather than an operating reorganization. With approximately $3.8 million in cash reserves and $72,947 in total liabilities, the debtor entered chapter 11 solvent and filed a plan of liquidation within three months of the petition date. The sale requires a section 363(h) partition sale and an adversary proceeding to clear title across 2,080 intervals held by hundreds of co-owners.

Debtor	Maple Ridge Property Owners Association, Inc.
Court	U.S. Bankruptcy Court, Western District of North Carolina (Shelby Division)
Case Number	25-40271
Petition Date	November 25, 2025
Judge	Hon. Austin Edwards
Subchapter	Subchapter V

Timeshare Intervals and Co-Owner Concentration

Maple Ridge is a North Carolina not-for-profit corporation formed in 1985 to operate, manage, lease, maintain, and repair the Maple Ridge Townhouse Subdivision in Lake Lure, North Carolina. The property at 747 Buffalo Creek Road consists of 13 buildings containing 40 units, including 12 two-bedroom loft units and 28 A/B lock-off units, and operates as a timeshare resort with a total of 2,080 intervals.

Ownership of the intervals is concentrated among a few parties. PTVO Owners Association, Inc. holds 1,176 intervals, or 56.54% of the total. Wyndham Vacation Resorts, Inc. holds 330 intervals (15.87%). The debtor itself owns 80 intervals (3.84%), and the remaining 494 intervals (23.75%) are held by other individual owners. The property previously operated under the Club Wyndham Fairfield Mountains brand before Wyndham announced changes to its resort portfolio.

Member Vote and Cessation of Occupancy

The plan of liquidation states that association members authorized the board at an October 14, 2025 special meeting to file chapter 11, engage professionals, and pursue a bankruptcy sale of the property free and clear of co-owner interests. More than 99% of the voting interests present voted in favor of the filing, and the sale motion confirms that the membership mandate included authority to sell all interval interests jointly through the bankruptcy process.

Occupancy at the property ceased on December 27, 2025, although the debtor continued operating to maintain and secure the buildings after that date. The pre-status conference report filed on January 9, 2026, stated that the debtor was coordinating with the Subchapter V trustee and the Bankruptcy Administrator on sale structure, expected to file bidding procedures, expected to commence a section 363(h) proceeding against co-owners, and anticipated a Subchapter V plan that would pay creditors in full and distribute sale proceeds to owners.

Solvent Balance Sheet and Cash Reserves

The debtor's schedules report total liabilities of $72,947.34, all classified as nonpriority unsecured claims. No secured debt appeared on the summary page.

Cash and cash equivalents totaled $3,800,431.93 as of the filing date, held in accounts at Truist, Comerica, and two Ameriprise accounts. Other disclosed assets included $564,306 of accounts receivable, $125,334 of deposits and prepayments, a 2021 Ford F-150 valued at $19,000, and a 2024 federal tax overpayment of $10,041. The debtor's 3.85% interval ownership interest and a maintenance shed were listed on the real-property schedule but carried at unknown value.

The statement of financial affairs reported gross operating revenue of $3,192,530 from January 1, 2025 through the petition date, plus $32,451 of interest income for the same period. The debtor reported operating revenue of $3,506,126 in 2024 and $3,546,825 in 2023.

Executory contracts. The schedules also identify several significant executory contracts, including a Wyndham management agreement, an inventory foreclosure agreement with Wyndham Vacation Resorts, multiple Vyve Broadband business service orders, and a collection-services agreement with Pinnacle Recovery. The disposition of these contracts under the plan and sale process will affect the property's marketability and the scope of obligations assumed or rejected in connection with the closing.

Section 363(h) Partition Sale and Auction Timeline

The debtor filed a sale motion on February 3, 2026, seeking authority to market and sell the property through an open auction process. Because the debtor owns only 3.84% of the intervals, the sale requires one or more section 363(h) proceedings to authorize the sale of co-owned interests. Closing is conditioned on a final and unappealable order or judgment authorizing the debtor to sell those co-owned interests jointly with its own. Section 363(j) allocation rights for non-debtor co-owners are to be addressed in the 363(h) proceedings and the Subchapter V plan.

The court entered the sale order on March 6, 2026, approving the following timeline:

• Marketing commencement by February 24, 2026
• Stalking horse deadline: April 3, 2026 at 5:00 p.m. Eastern
• Bid deadline: May 22, 2026 at 5:00 p.m. Eastern
• Auction: June 2, 2026 at 10:00 a.m. Eastern
• Closing: fourteen days after both sale-order entry and final disposition of the 363(h) proceeding

If the debtor designates a stalking-horse bidder, it may provide due-diligence expense reimbursement of up to $100,000 and potentially a break-up fee. Hilco Real Estate is marketing the property and has listed the 68 condominium-style units for sale as fee simple interests subject to court approval. Hilco's marketing materials describe the assets as formerly operated Club Wyndham resorts being conveyed free of brand affiliation and management constraints, providing flexibility for continued hospitality use or potential residential repositioning. On-site inspections are available by appointment, and Hilco is marketing the Maple Ridge property alongside several other former Club Wyndham resort assets nationally.

Subchapter V Liquidating Plan and Distribution Waterfall

The debtor filed a Subchapter V plan of liquidation on February 23, 2026. The plan provides that all assets will be liquidated and proceeds distributed in a defined waterfall. The creditor bar date for nongovernmental claims was February 3, 2026.

Class 1 — Priority claims. Unimpaired. Paid in full in cash within 30 days after the later of the sale closing, completion of the 363(h) proceeding, confirmation, resolution of claim objections, and allowance by final order.

Class 2 — General unsecured claims. Unimpaired. Same timing and full-cash treatment as Class 1.

Class 3 — Association member interests. Unimpaired. Members receive a pro rata share of remaining sale proceeds and cash reserves, net of unpaid fees, after all higher-priority obligations and the wind-down reserve are satisfied. The debtor's own 80 intervals are excluded from the distribution calculation.

The plan states that the debtor expects all creditors to be paid in full and that additional funds will flow to association-member interests. The debtor argues that chapter 11 administration should produce better results than a chapter 7 conversion because a chapter 7 trustee would be less likely to fund the necessary 363(h) litigation against hundreds of co-owners.

Hilco Retention and First-Day Relief

Counsel. K&L Gates LLP and Grier Wright Martinez, P.A. serve as debtor's counsel.

Real-estate broker. Hilco Real Estate, LLC was retained as real-estate professional to develop sales strategy, solicit interested parties, negotiate sale terms, and market the property. The engagement grants Hilco a six-month exclusive agency with automatic 30-day extensions. Hilco receives a 4.0% commission on gross sale proceeds and may seek reimbursement of up to $25,000 of expenses. The court granted relief from any requirement that Hilco maintain time records or file interim fee applications.

Accountant. Joanne Powell CPA, PA was retained on March 4, 2026, on a flat-fee basis of $6,400 per year plus up to $250 of reimbursable expenses. The firm handled the debtor's tax-return preparation and financial-statement audit work prepetition.

First-day relief. The court entered the cash-management order on December 10, 2025, authorizing the debtor to continue using its existing cash management system, maintain existing bank accounts and business forms, continue ordinary-course use of credit cards and the D&O expense program, and honor related fees and obligations. The order required the debtor to keep records sufficient to trace transfers and to report account openings or closings in monthly operating reports or by notice to the Bankruptcy Administrator. The court also entered a tax order on the same date authorizing, but not directing, the debtor to pay prepetition sales, use, trust fund, property, income, and similar taxes that became due within 30 days of the petition date, while preserving the debtor's right to contest liability or amount. Additional first-day relief included an insurance order and a claims agent order approving Omni Agent Solutions as the claims and noticing agent, all entered on December 10, 2025.

Key Timeline

• November 25, 2025: Chapter 11 Subchapter V petition filed.
• December 10, 2025: Court entered cash-management, insurance, tax, and claims-agent first-day relief orders.
• December 20, 2025: Schedules and statement of financial affairs filed.
• December 27, 2025: Occupancy at the property ceased.
• January 9, 2026: Pre-status conference report previewed sale strategy and plan timeline.
• February 3, 2026: Sale motion and bidding procedures filed; nongovernmental creditor bar date.
• February 11, 2026: Hilco Real Estate retention application filed and approved.
• February 23, 2026: Subchapter V plan of liquidation filed.
• March 4, 2026: Joanne Powell CPA retention application filed.
• March 6, 2026: Court entered the sale and bidding procedures order.
• April 3, 2026: Stalking horse designation deadline.
• May 22, 2026: Bid deadline.
• June 2, 2026: Scheduled auction date.

Frequently Asked Questions

What is the Maple Ridge Property Owners Association bankruptcy about?

Maple Ridge Property Owners Association filed chapter 11 under Subchapter V to pursue a court-supervised liquidation of a 40-unit timeshare resort in Lake Lure, North Carolina. The filing enables the debtor to sell the property free and clear of hundreds of co-owner interests through a section 363(h) partition sale.

Who is the claims agent for Maple Ridge Property Owners Association?

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.

Will creditors be paid in full?

The plan of liquidation states that the debtor expects all creditors to be paid in full. Total liabilities of $72,947 are small relative to the debtor's $3.8 million in cash reserves, and additional sale proceeds are expected to flow to association members.

When is the auction scheduled?

The court-approved sale timeline sets the auction for June 2, 2026, at 10:00 a.m. Eastern. The bid deadline is May 22, 2026, and closing is expected fourteen days after both the sale-order entry and final disposition of the 363(h) proceeding.

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