Club Wyndham Skyline Tower's $18.2M Subchapter V Sale
Skyline Tower Timeshare Association Files Subchapter V to Force $18.2M Atlantic City Sale
ElevenFlo Research
March 6, 202616 min readUpdated July 21, 2026
Key points
Skyline Tower Resort filed Subchapter V chapter 11 in November 2025 with $34M in projected capital needs through 2031. A whole-property sale will terminate interests of approximately 8,848 timeshare interval owners at the Atlantic City 32-story high-rise.
A Zoom auction on April 28, 2026 drew three qualified bidders and produced a $18.2 million winning bid from Skyline Tower Acquisitions LLC for the shuttered 32-story Club Wyndham Skyline Tower in Atlantic City, with Capital Insight Holdings, LLC named back-up bidder at $18.1 million. Closing that sale still depends on an unresolved threshold problem: the resort is co-owned through thousands of fractional timeshare interests, and the debtor must obtain authority to sell the non-consenting co-owners' interests alongside the estate's. To get there, Skyline Tower Resort Vacation Condominium Association filed a section 363(h) adversary complaint against the property's co-owners on April 9, 2026, and the court pushed plan confirmation from April 9 to August 13, 2026 so that fight could be resolved first.
The Association filed for chapter 11 under Subchapter V on November 15, 2025 in the U.S. Bankruptcy Court for the District of New Jersey (case no. 25-22156), assigned to Judge Andrew B. Altenburg, Jr. The filing followed a member vote authorizing the board to sell the entire property and dissolve the timeshare plan after a 2025 reserve study projected roughly $34 million in capital needs through 2031 against a deteriorating maintenance-fee base, with 1,209 interval owners more than $2.48 million behind.
Skyline Tower is a 32-story concrete high-rise built in 1982 above a parking deck at 100 S. North Carolina Avenue, one block from the Atlantic City Boardwalk. The building holds 20 commercial units on its lower floors and 296 residential timeshare units above, and Hilco Real Estate listed the tower for sale in early 2026, marketing it as an approximately 273,000-square-foot redevelopment opportunity. The Association, a not-for-profit New Jersey corporation, administers the property as a timeshare condominium under a master deed first recorded in 2005 and renovated under the Club Wyndham brand in 2011.
The First Day Declaration of Sheama Holmes-Walker states that PTVO Owners Association, Inc. holds about 67.81% of the vacation ownership interests, approximately 8,848 individual interval owners collectively hold about 21.67% through roughly 5,126 separate contracts, and Wyndham Vacation Resorts, Inc. holds about 10.17% and owns all 20 commercial units. The Association itself holds only a small fractional position acquired through sheriff's deeds and conveyances from deceased or delinquent owners.
Owner
Ownership %
Notes
PTVO Owners Association, Inc.
67.81%
Majority controlling interest
Individual interval owners (~8,848)
21.67%
Held through ~5,126 contracts
Wyndham Vacation Resorts, Inc.
10.17%
Also owns all 20 commercial units
Skyline Tower Resort Vacation Condo Association
0.35%
The Debtor
Vacation Ownership Interests at Petition
The Association does not employ staff directly. The First Day Declaration describes operations conducted through a 2006 management agreement with Vacation Resort Management, Inc., a Wyndham affiliate that passes costs through on a dollar-for-dollar basis and earned management fees of $1,986,488.40 in 2024. That arrangement places day-to-day control of the property, its bank accounts, and its delinquency collection within the Wyndham organization even as the Association's members move to liquidate.
Reserve Study Shortfall and Owner Delinquencies
Management tied the filing to a maintenance and reserve model that the property could no longer support. The First Day Declaration reports that the Association's 2025 reserve study projected roughly $34 million in repairs and capital improvements through 2031, with immediate needs exceeding $4.2 million across 2026 and 2027. To close the gap, the study recommended raising annual reserve contributions by 9.75% per year through 2031 — a cumulative increase of about 58.5% — and warned that at the existing contribution rate, reserve balances would turn negative by 2031.
Owner payment performance had already broken down before the petition. As of October 31, 2025, the declaration states that 1,209 interval owners — roughly a quarter of the individual ownership base — were not current on maintenance fees, owing $2,482,681.56. The Association had historically pursued collections through outside vendors and an Inventory Foreclosure Agreement with Wyndham Vacation Resorts dated February 2, 2013, under which Wyndham pays foreclosure costs in exchange for title to delinquent inventory.
Member Vote to Liquidate and Resort Shutdown
On October 4, 2025, the Association held a special meeting at which 58.30% of voting interests were represented, exceeding the 15% quorum. Members approved each authorizing resolution by roughly 99.9%, including a 99.93% vote to file chapter 11. The resolutions, recited in the First Day Declaration, authorized the board to file chapter 11, engage professionals, suspend resort operations for 2026, and accept additional interests as a tenant in common.
The operations resolution authorized the board to suspend occupancy effective December 27, 2025, stop collecting 2026 maintenance fees, waive reserve funding, cancel reservations, and redirect reserve balances toward liquidation expenses. The shutdown carried a workforce cost: the Association filed a WARN notice with the New Jersey Department of Labor reporting 116 layoffs effective December 31, 2025 and January 1, 2026, and local reporting described more than 100 Club Wyndham Skyline Tower employees losing jobs as ownership announced plans to close and sell. Affected employees were offered severance and transfer opportunities to New York, Florida, or Chicago locations, with a skeleton crew retained to maintain the property until sale. Wyndham had separately announced plans to remove legacy resorts from the Club Wyndham system effective December 31, 2025.
Bidding Procedures and the $18.2 Million Auction
The Association moved quickly from authorization to a court-supervised sale. It filed a bidding procedures motion on January 14, 2026, arguing that partition in kind was impracticable given nearly 9,000 co-owners, that selling only the estate's fractional interests would realize materially less than a sale of the whole property, and that non-debtor co-owners would retain section 363(i) rights to purchase at the approved price. The U.S. Trustee objected on February 3, 2026 that the proposed bid protections were premature because no stalking horse or executed purchase agreement existed, and that the sale-objection window was too short.
The court approved a revised framework on February 10, 2026. The bidding procedures order set a stalking-horse deadline of February 16, a bid deadline of April 17, and a Zoom auction for April 28, 2026, and required any notice of successful bidder within three business days of the auction. Rather than award protections to a named bidder, the order preserved conditional stalking-horse economics: the debtor could later seek expense reimbursement up to $100,000 and a breakup fee up to 3% of a stalking-horse bid, with initial overbids required to top any approved protections plus at least $100,000. The court approved Hilco Real Estate as the marketing broker on February 13, 2026.
The notice of successful bidder reports that the April 28 auction drew three qualified bidders and selected Skyline Tower Acquisitions LLC at $18,200,000, with Capital Insight Holdings, LLC as back-up at $18,100,000. The same notice extended the deadline for any association member to submit a section 363(i) bid to May 7, 2026 and stated that the sale hearing had not yet been scheduled, with timing to be set in a forthcoming sale-approval request. The debtor filed that sale motion on July 7, 2026, confirming Skyline Tower Acquisitions LLC as purchaser at $18,200,000 and setting a sale hearing for August 13, 2026 — the same date as plan confirmation — with objections due July 15, 2026.
Section 363(h) Adversary Against the Co-Owners
Because the resort is co-owned through thousands of timeshare interests, a clean whole-property sale requires either owner consent or court authority to sell non-consenting interests. On April 9, 2026, the debtor commenced adversary proceeding 26-01175 with a complaint to sell co-owned property under 11 U.S.C. section 363(h). The complaint names the resort's co-owners as defendants: Wyndham Vacation Resorts, Inc., which owns all commercial units and about 12.22% of the vacation ownership interests; First American Trust, FSB, as trustee under the Club Wyndham Access Vacation Ownership Plan, holding about 67.81%; and roughly 8,190 interval owners holding about 19.74%.
The complaint pleads a single count under section 363(h) and asserts the four statutory prongs: that partition in kind is impracticable given the number of owners and the timeshare structure; that a sale of only the estate's interest would realize significantly less than a sale free of the co-owners' interests; that the benefit to the estate outweighs any detriment to the co-owners, none of whom would be displaced from a primary residence; and that the property is not used to produce, transmit, or distribute electric energy or gas. The debtor asks the court to authorize a sale of both the estate's and the defendants' interests and to direct distribution of net proceeds according to ownership shares. Another timeshare association, Fairfield Williamsburg, has sought the same section 363(h) sale authority in a Subchapter V case.
Subchapter V Plan of Liquidation and Class Treatment
The debtor filed a Subchapter V plan of liquidation on February 13, 2026, funded by sale proceeds, existing cash reserves, and other estate property. The plan divides claims into administrative and priority tax claims, Class 1 priority claims, Class 2 general unsecured claims, and Class 3 association member interests.
Class
Treatment
Administrative / priority tax
Paid in full
Class 1 — priority claims
Paid in full within 30 days of the later of sale closing, completion of the 363(h) proceeding, or confirmation
Class 2 — general unsecured
Paid in full in cash on the later of the effective date or 10 days after allowance
Class 3 — member interests
Pro rata share of remaining net proceeds and cash after senior claims and a wind-down reserve
Plan of Liquidation Class Treatment
The plan places the equity-style recovery with the association members. Class 3 distributions are scheduled within 60 days of the later of sale closing, completion of the 363(h) proceeding, or confirmation, distributions under $50 are deemed waived, and the Association intends to dissolve within 60 days after the final distribution. Members in good standing can alternatively swap their interests for Club Wyndham Access points instead of taking proceeds, and any distribution may be reduced by set-off for delinquent fees. The debtor serves as its own disbursing agent, the board retains post-confirmation governance, and claims objections are due 180 days after the effective date.
The confirmation hearing was later adjourned as the sale and section 363(h) work advanced. After a scheduling order set an April 2, 2026 ballot and objection deadline and an April 9 confirmation hearing, the court adjourned confirmation on March 30, 2026 to August 13, 2026, describing the date as not peremptory, to give the debtor time to address the section 363(h) sale issues.
Retention Disputes, Fees, and Cash Management
The debtor sought to retain K&L Gates as special counsel under section 327(e) for the sale, the 363(h) adversary, and dissolution, citing the firm's long prepetition involvement with the association. The U.S. Trustee objected that the proposed scope amounted to "conducting the case" and that the firm's concurrent representation of Wyndham Vacation Resorts and Travel + Leisure Co. created adverse interests. The debtor responded that Forman Holt remained general bankruptcy counsel and that replacing K&L Gates would duplicate cost given the firm's grasp of the timeshare architecture, and Judge Altenburg approved the retention on January 29, 2026, effective as of the petition date.
Professional fee awards. The court entered first interim fee awards in May 2026. Forman Holt was awarded $193,570.50 in fees plus $2,482.21 in expenses for November 15, 2025 through March 31, 2026, and K&L Gates was awarded $210,848.50 plus $2,135.34 in expenses. Subchapter V trustee Holly Smith Miller was awarded $11,485.00 and Joanne Powell, CPA, P.A. was awarded $7,750.00. Omni Agent Solutions was employed as administrative, claims, noticing, and solicitation agent by order entered April 14, 2026.
Section 345(b) cash dispute. A second U.S. Trustee fight concerns where the estate holds its cash. The debtor moved on May 14, 2026 for a determination that it complies with section 345(b), or for a waiver, as to its Merrill Lynch accounts. The U.S. Trustee objected on June 11, 2026, noting the accounts held about $4,517,955.52 at filing, fell to $2,709,321.75 by April 30, are not at an authorized depository under a Uniform Depository Agreement, and exceed FDIC limits. The debtor replied on June 15, 2026 that the funds sit in U.S. Treasury notes carrying only unrealized fluctuations. The court held a hearing on the motion on June 18, 2026; docket entries through mid-July 2026 do not show a ruling on the request.
Declining estate cash. The debtor's schedules reported total assets of $10,021,450.87 and total liabilities of $447,274.19, all nonpriority unsecured, with no secured or priority debt. The January 2026 operating report showed $8,693,558.85 of cash at month-end, and the April 2026 report showed cash of $5,536,542.13 after $2,170,164.75 of disbursements during the auction-and-fee cycle. The plan assumes sale proceeds plus residual cash will cover both creditor payments and member recoveries.
Atlantic City Timeshare Context
Skyline Tower is the second Atlantic City timeshare operator to enter bankruptcy in 2025. Flagship Resort Development Corp., which owned the Flagship and Atlantic Palace resorts and La Sammana in Brigantine, filed on May 10, 2025 with $50-100 million in assets and liabilities, after years of strain attributed to COVID-19, rising interest rates, and timeshare defaults approaching 40%.
Average annual maintenance fees reached $1,480 per weekly interval in 2024, a 17.5% increase from $1,260 in 2023, driven by inflation, labor, utility, and coastal-insurance costs. Skyline Tower's 2024 occupancy of 63.3% ran more than 15 points below the roughly 80% industry average, leaving fewer paying users to absorb a rising capital bill. Industry commentary notes that many timeshare governing documents and several state statutes provide for orderly termination of failing legacy resorts, the path the Association has now taken. The Star Island Vacation timeshare HOA pursued a comparable orderly liquidation.
Key Timeline
Date
Event
October 4, 2025
Members vote 99.93% to authorize chapter 11 and a sale
November 15, 2025
Subchapter V chapter 11 petition filed (25-22156)
November 21, 2025
Interim first-day relief entered
December 19, 2025
Schedules and SOFA filed (~$10.0M assets, ~$447K liabilities)
December 27-31, 2025
Resort operations cease; 116 layoffs
January 14, 2026
Bidding procedures motion filed; UST objects to K&L Gates retention
January 29, 2026
K&L Gates approved as special counsel
February 10, 2026
Bidding procedures order entered
February 13, 2026
Subchapter V plan of liquidation filed; Hilco retention approved
March 30, 2026
Confirmation hearing adjourned to August 13, 2026
April 9, 2026
Section 363(h) adversary 26-01175 filed
April 14, 2026
Omni Agent Solutions employed
April 28, 2026
Auction; Skyline Tower Acquisitions wins at $18.2M
May 29, 2026
First interim fees awarded (Forman Holt, K&L Gates)
June 18, 2026
Section 345(b) cash-management hearing held
July 7, 2026
Debtor files sale-approval motion, setting sale hearing for August 13, 2026
August 13, 2026
Sale hearing and plan confirmation hearing
Frequently Asked Questions
Who bought the Skyline Tower property?
Skyline Tower Acquisitions LLC was the successful bidder at the April 28, 2026 auction at $18.2 million, with Capital Insight Holdings, LLC as the $18.1 million back-up bidder. The debtor's July 7, 2026 sale motion set a sale hearing for August 13, 2026, the same date as plan confirmation.
Why did the Association file for bankruptcy?
Members voted 99.93% to authorize the filing after a 2025 reserve study projected about $34 million in capital needs through 2031 and reserves projected to go negative by 2031, while 1,209 owners were $2.48 million behind on maintenance fees. The board concluded the legacy timeshare structure could no longer support the property.
What is the section 363(h) adversary proceeding?
Adversary 26-01175, filed April 9, 2026, seeks court authority to sell the non-consenting co-owners' fractional interests together with the estate's interest. Section 363(h) permits such a sale where partition is impracticable, a sale of the estate's interest alone would realize significantly less, the benefit to the estate outweighs detriment to co-owners, and the property is not utility property.
How will timeshare owners be treated under the plan?
Class 3 association members receive a pro rata share of net sale proceeds and cash after senior claims and a wind-down reserve, with distributions under $50 waived and any payment subject to set-off for delinquent fees. Members in good standing may instead swap their interests for Club Wyndham Access points.
When is plan confirmation?
The confirmation hearing was adjourned from April 9 to August 13, 2026 to allow the debtor to resolve the section 363(h) sale issues first.
Who is the claims agent for Skyline Tower Resort?
Omni Agent Solutions, Inc. serves as the claims and noticing agent under an order entered April 14, 2026, which also engages Omni to solicit, tabulate, and certify plan votes and manage distributions.
The ElevenFlo bankruptcy blog follows other timeshare association liquidations and Atlantic City filings.
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. Read our full disclaimer.
