Bay Cliffside Lodge II Council of Co-Owners is now on a court-approved sale track, with bidding procedures in place for a coordinated sale of the Fairfield Bay properties and near-term hearings focused on cash-management issues and case administration. The debtor filed Subchapter V on February 11, 2026, after member approval of a chapter 11 strategy to sell the timeshare property free and clear, liquidate, and dissolve the association; the filing was driven by suspended operations, low occupancy, no secured debt but meaningful tax obligations, and a reserve study projecting approximately $1.7 million of 2026 repair and capital needs against a much smaller reserve contribution base, as described in the Alkire first-day declarationDkt. 8.
The case is one of several related Fairfield Bay association cases built around a common sale strategy. Cliffside Lodge II manages a 24-unit timeshare condominium with 1,248 unit weeks, with PTVO Owners Association and Wyndham-related interests holding large blocks of the ownership base; prepetition, members representing roughly three-quarters of interests authorized the filing, with the debtor seeking to preserve cash, maintain insurance, pay taxes, retain restructuring professionals, and market the property through Hilco while pursuing a section 363 sale and later liquidation. The debtor commenced that process through its Subchapter V voluntary petitionDkt. 1 and first-day relief, while the court has continued interim authority for the debtors to use existing bank accounts and business forms, subject to Section 345 issues and U.S. Trustee reservations reflected in the .
The sale path is now the central case driver. On May 29, the court entered an Auction and Bidding Procedures OrderDkt. 120 approving procedures for five Fairfield Bay properties totaling 165 units, setting a June 22 stalking-horse designation deadline, a July 20 qualified-bid deadline, a July 27 virtual auction, post-auction Section 363(i) matching-right deadlines, and sale-objection timing after notice of a successful bidder. Before that sale calendar matures, the next scheduled milestone is a June 1 hearing on the U.S. Trustee’s objection to the debtors’ cash-management and Section 345 waiver relief, noticed in the hearing scheduleDkt. 115, followed by a June 18 claims-and-administration hearing.