Current posture

What matters now

Cliffside Lodge II is pursuing a sale-led Subchapter V liquidation while using coordinated adversary proceedings to clear the interval-ownership interests needed to convey the property. The debtor remained in chapter 11 through June, ending the month with approximately $1.51 million of cash after receipts of about $3,600 and disbursements of about $39,700; it also reported roughly $107,100 of receivables and $6,300 of postpetition payables in its June monthly operating report Dkt. 42. The association filed on February 11, 2026, after declining occupancy and a capital-repair burden made continued ownership increasingly difficult. Its first-day declaration Dkt. 8 describes a 24-unit Fairfield Bay timeshare property divided into 1,248 unit weeks, occupancy of approximately 35.9% in 2025, and a reserve study estimating about $1.69 million of required 2026 repairs and improvements. Although the debtor reported approximately $1.66 million of cash, about $108,000 of receivables, and no secured debt, owners had authorized a bankruptcy filing in September 2025 to enable a free-and-clear property sale; timeshare operations were suspended in December. The stated end state was a sale, distribution of net proceeds through a liquidating…

Updated Jul 26, 2026