Sea Oaks Condominium Council of Co-Owners, Inc. plans to use Chapter 11 to pursue a sale of its Edisto Beach timeshare property, citing approximately $5.2 million in projected repairs, capital improvements, and renovations for 2025–2031. The central transaction issue is ownership: the association reported owning only about 4.33% of the unit weeks and intends to seek court authority to sell its interest together with the interests of other owners. That is the debtor’s proposed strategy, not an approved transaction. First-day declaration, ¶¶28, 33, 53
The association’s August 5, 2026 status report reaffirmed its property-sale objective and said it anticipated filing a plan by the statutory deadline. This account reflects court evidence reviewed through September 14, 2026; the cited substantive filings establish the sale objective, but do not establish an approved buyer, sale price, or completed sale. Subchapter V status report
U.S. Bankruptcy Court for the District of South Carolina
Case Number
26-02882
Petition Date
June 26, 2026
Case Snapshot
The nonprofit association filed under Chapter 11, Subchapter V. It manages Sea Oaks Condominium, a timeshare community within the larger Ocean Ridge development. The property comprises 24 units across four buildings and 1,248 unit weeks. First-day declaration, ¶¶5–6, 19–26
Selling the whole property from a minority ownership position
According to association records described in the declaration, ownership as of May 8, 2026 was divided as follows. These are interests in the timeshare property, not equity percentages in the debtor corporation. First-day declaration, ¶¶28–31
Owner
Unit weeks
Reported share
Sea Oaks association
54
Approximately 4.33%
First American Trust, as trustee for the Club Wyndham Access Vacation Ownership Plan
788
Approximately 63.14%
Wyndham Vacation Resorts
179
Approximately 14.34%
Other interval owners
227
Approximately 18.19%
Property Ownership Reported as of May 8, 2026
The association intends to seek a judgment, by consent or otherwise, authorizing a joint sale of its undivided interest and the other owners’ interests under section 363(h) or other applicable Bankruptcy Code provisions. It reserved the right to bring a lawsuit against association members to obtain that relief. The declaration describes intended relief; it does not establish that such a lawsuit was filed or that the court ruled on the sale authority. First-day declaration, ¶53
The contemplated transaction would sell the property free and clear of members’ interests, with those interests attaching to sale proceeds. The association also proposed terminating or amending the timeshare plan at or before closing, distributing net proceeds after administrative and sale costs, and ultimately dissolving. Distributions could be subject to offsets for delinquent maintenance fees or special assessments. Each step remains part of the debtor’s stated intentions, subject to the necessary court approval. First-day declaration, ¶53
Repair costs and suspended occupancy
Board president Douglas Punger’s declaration attributed the approximately $5,204,903 capital-work estimate to a 2025 reserve study covering 2025–2031. It also reported 2025 annual maintenance fees of roughly $1.85 million across association members. The repair estimate is a projected expenditure requirement, not secured debt or a proposed purchase price. First-day declaration, ¶¶33–35
At an October 23, 2025 membership meeting, members authorized a bankruptcy filing and a court-approved effort to market and sell the entire property. They also approved suspending occupancy and collection of 2026 maintenance fees, while preserving the association’s ability to seek those fees later upon notice. By the petition date, the declaration reported that occupancy had been suspended and that the property had not hosted guests since January 2026. First-day declaration, ¶¶49–52, 55
Cash available does not establish an owner recovery
The association reported no secured debt at filing and approximately $1.78 million in cash and cash equivalents, with the cash figure measured as of May 31, 2026. Its property interest had an undetermined value. Punger said the association had been paying liabilities in the ordinary course before filing and anticipated paying all claims in full. That expectation is not a court-approved recovery or evidence of payment. First-day declaration, ¶¶54–55 and footnote 6
On September 14, the U.S. Trustee stated that no unsecured creditors’ committee had been appointed and reserved the right to appoint one later. That statement concerns creditor representation; it does not resolve the proposed sale or distributions. U.S. Trustee statement
The next substantive research question is how the association will obtain authority to convey the other owners’ interests and translate a sale into net distributions. Its declared strategy leaves both the sale authorization and the amount available after costs for future court proceedings. First-day declaration, ¶53
Subchapter V status report /documents/6b201023-838a-44d8-a1ff-7c15c836d982/
U.S. Trustee statement /documents/67b91076-b2c8-4768-9a9c-7fc9b56afa91/
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.