Flagship Resort Development Corporation is an ESOP-owned timeshare vacation ownership company operating in the Atlantic City region under the FantaSea Resorts and Club Boardwalk Resorts brands, with three resort properties totaling 794 living units and over 37,000 timeshare intervals: the 32-story Flagship Resort (440+ units), the 31-story Atlantic Palace on the Boardwalk (292 suites), and the boutique La Sammana Resort in Brigantine (62 units). Incorporated in 1996 as a subsidiary of FantaSea Resorts Group (80% ESOP-owned since 2011), the company employed approximately 101 direct employees with 250 total including management company workers. Flagship filed for Chapter 11 protection on May 10, 2025 in New Jersey (Case No. 25-15047) before Judge Jerrold N. Poslusny Jr. after COVID-19 reduced consumer interest in timeshares, rising interest rates compressed arbitrage margins from in-house financing, timeshare mortgage default rates approached 40%, and Palmer consumer fraud litigation resulted in a $1.67 million judgment with a subsequent Lantych class action exposing potential damages exceeding $100 million. At filing, the company carried approximately $48.8 million in funded debt, including $25.4 million to Banc of California and $15.1 million to Colebrook Financial under receivables facilities, plus $8.3 million owed to ownership associations. The Debtors obtained approximately $5.6 million in DIP financing through the existing receivables facilities from Banc of California and Colebrook Financial. Substantially all assets were sold to AC Boardwalk Investments, LLC — an entity formed by former co-CEOs Kevin Jones and Roxanne Passarella who resigned April 25, 2025 — for $5 million cash plus assumption of approximately $40.5 million in debt. The Plan of Liquidation was confirmed via cramdown on October 2, 2025 (Class 7 GUC rejected), with an effective date of December 22, 2025. General unsecured creditors receive a projected 4.5-5.3% recovery from a $400K-$480K settlement fund.