*** New Thread: KBV Vote for Chapter 11 Bankruptcy

[bnoble]

As an owner, what saber would I rattle, exactly? The resort is closing and---unlike the others that are merely less desirable destinations---several buildings in this one cannot be occupied, and the others are tear downs.

A negotiation requires each side to have something the other side wants. I can't think of anything the owners have that Wyndham wants, except more money, and I'd rather not give them any more for KBV.

 

[slabeaume]

I talked to the powers to be at Wyndham today to see if those of us who converted our weeks to Wyndham points would have the option to convert to a different resort(s). They said not at this point. They said it's up to Pahio Kauai Beach Villas to work up options for us. I don't understand how Kauai Beach Villas is in control since we "converted" to Wyndham many years ago. Even had to buy a week at Bali Hai to do the conversion. Am I missing something? We didn't really convert to Wyndham?? Does this make sense???

 

[amycurl]

Unlike the other 14, however, those numbers mean that Wyndham *doesn't* own a controlling interest in the intervals. Now, I was told there would be no. math. but adding those two percentages up, I get to 43%, not over 50%. Maybe that's what makes it different.

Maybe it was the "unfolding events" at KBV that gave Wyn the *idea* to pursue bankruptcy for the other 14 as a way for them to get out from under those ownerships, even thought those resorts don't have the huge structural issues that KBV has. #speculation

 

[ecwinch]

I talked to the powers to be at Wyndham today to see if those of us who converted our weeks to Wyndham points would have the option to convert to a different resort(s). They said not at this point. They said it's up to Pahio Kauai Beach Villas to work up options for us. I don't understand how Kauai Beach Villas is in control since we "converted" to Wyndham many years ago. Even had to buy a week at Bali Hai to do the conversion. Am I missing something? We didn't really convert to Wyndham?? Does this make sense???

It does not make sense.

So it is up to another Wyndham-controlled organization to work up options for us? Is that what has happened at the other 14 resorts where Wyndham is using "bankruptcy" to exit from a timeshare plan?

So each of those HOA's negotiated with Club Wyndham to terminate the timeshare plan on the assurance that members who had assigned their usage to Club Wyndham were offered CWA points in exchange for their timeshare interest? And our BoD failed to do so or will do so shortly?

Courts like it when a class of people are treated uniformly.

 

[DeniseM]

What's wrong with this picture?

 

[schreff]

I agree it is illogical that KBV would be treated separately from any other 14 Wyndham properties that are being removed from the Club Wyndham portfolio. The process they are using (bankruptcy) is the same, TNL/Wyndham's involvement as the manager/controlling interest owner is the same. Even the same law firm (K&L Gates).

So why would KBV be treated any differently? Some saber rattling may need to occur to change the direction.

Whatever benefits Wyndham is what controls the KBV demise plan. Remember the incorporation vote and the incorporation. I found the audit interesting in many ways; one was that NO opinion for the supplemental information was issued by the auditor. Are those supplemental figures important?
Lastly, the assets appear to be substantial. The last special assessment figures were not separated and the status as to the cash inflows and delinquencies for that in particular are not listed. LEGERDEMAIN? What happens to the folks who paid the special assessment like us versus the ones who did not? Shouldn't they be refunded their monies. I believe that this was mentioned by the BOD previously. Please refresh my memory.

 

[slabeaume]

I emailed KBV and was sent this in response:
"Thank you for your email. The IOA Board voted earlier last month to temporarily shut down the resort effective January 1, 2026 due to life-safety issues of the buildings and the unknown circumstances of the pending filing of the AOAO Bankruptcy. Reservations that are active in 2026 are being notified of the cancellation and shut down. As of right now the board is unable to answer individual questions. We have created an FAQ page and are encouraging owners to visit it frequently as we will be posting information as it becomes available. The special assessment that was paid is currently in escrow being used towards the repairs of building G."
I accentuated the last sentence. I gather from that those of us who paid the special assessment won't be getting anything back. As for the FAQ page---I can find no questions or answers.

https://kauaibeachvillasresort.com/aoao-faq.html

Mahalo

 

[DeniseM]

So, the resort is closing in 49 days, but they are spending the special assessment on "repairs" anyway. This seems fishy! It would be very interesting to follow the money.

 

[bnoble]

I gather from that those of us who paid the special assessment won't be getting anything back.

Maybe not directly, but very likely indirectly. So far, the documents that have been sent out have been very clear that any potential sale proceeds will first be offset by any amounts owed in arrears.

 

[DeniseM]

The special assessment that was paid is currently in escrow being used towards the repairs of building G."

 

[bnoble]

Yes, I am capable of reading English. They money is being spent. However, if someone did not pay the SA, that's in arrears. Past documents suggest that any amounts in arrears will be deducted from any potential proceeds. So it doesn't really matter if someone did or did not pay it, the outcome is the same.

 

[bnoble]

More generally, I do not wish to spend my emotional energy being mad at Wyndham. If I get anything back from all of this, I will consider it a rousing success, because that's more than these deeds have been worth for years now. I came by the two I owned by having someone give me the deeds for free plus a year's free use. I'm still to the good as far as I am concerned.

 

[DeniseM]

1) If that SA money is being spent on repairs, how are we getting that portion back?
2) Why are they doing repairs NOW?

 

[magmue]

Why are they doing repairs NOW?

I do wonder about that. I also worry about their phrasing in emails to owners ".... temporarily shut down the resort effective January 1, 2026..... due to ...... the unknown circumstances of the pending filing of the AOAO Bankruptcy."

The word "temporarily" suggests that KBV may not be dead yet.

 

[skcamerabuff]

Anyone hearing any updates on KBV. I am assuming we will receive either notification or billing around Dec 7. I am not planning to pay one penny of maintenance for KBV after Jan 1, 2026.

 

[firsttimeshare]

KBV did approve an operating budget for 2026. It is the same as 2025 not sure why they would have that with the bankruptcy. You can check out the meeting minutes if you use the link provided on Nov 12th from above.

 

[DeniseM]

Not surprised - in my opinion this Board and Wyndham will milk owners for all they can get.

 

[M & D]

I called Wyndham regarding a reduced charge for the monthly maintenance to find out why. I was told to call 877 883-3640 for options. I haven't called as of yet. I am wondering if others have seen their December maintenance charge reduced, ours was $19.77. The Wyndham representative I spoke with this morning ask if I had received any notice from the HOA, and we have not received anything. Has anyone else received anything? I sure would like this to end and be completely out of the this timeshare. We have enjoyed using the points at many Wyndham resorts, however being retired now, we would love not having the continue increase in maintenance fees.

 

[M & D]

Anyone know why KBV wasn't listed with the other Wyndham closings from this thread?

Wyndham is closing a handful of legacy resorts - dedicated chart/tracker located in the first post for this unfolding set of events

** IMPORTANT ** Current Wyndham Statement as of 12/1/2025: https://clubwyndham.wyndhamdestinations.com/us/en/resorts/resort-news/2025/your-resort-portfolio-refresh Original Wyndham Statement as made on 7-15-2025...

tugbbs.com

It lists information for point swaps and lists information about RCI points. We have 2 weeks booked through RCI for the end of January and 1st of February. I wonder if they are in jeopardy at this point. No answers is very frustrating. I will call the 877 883-3640 number tomorrow that a Wyndham representative gave me on Friday when I called them, and see what they say.

 

[DeniseM]

Your reservations should have been cancelled - the resort is closing Jan. 1st. You should call RCI asap and get a refund.

 

[geist1223]

The DRI US points seemed to be used anywhere HGV has to offer as far as I can tell. I never booked outside US, but my home page showed opportunity to book wherever HGV properties are located.

Anyone know why KBV wasn't listed with the other Wyndham closings from this thread?

Wyndham is closing a handful of legacy resorts - dedicated chart/tracker located in the first post for this unfolding set of events

** IMPORTANT ** Current Wyndham Statement as of 12/1/2025: https://clubwyndham.wyndhamdestinations.com/us/en/resorts/resort-news/2025/your-resort-portfolio-refresh Original Wyndham Statement as made on 7-15-2025...

tugbbs.com

It lists information for point swaps and lists information about RCI points. We have 2 weeks booked through RCI for the end of January and 1st of February. I wonder if they are in jeopardy at this point. No answers is very frustrating. I will call the 877 883-3640 number tomorrow that a Wyndham representative gave me on Friday when I called them, and see what they say.

Because it's Closing is separate from what is happening on the East Coast. I do not now if the same terms and conditions will apply. Especially since I believe Wyndham withdrew from the Management Contract.

 

[bnoble]

It lists information for point swaps and lists information about RCI points. We have 2 weeks booked through RCI for the end of January and 1st of February.

The TUG member who has been working with the folks at Wyndham about the other closures has confirmed that KBV is being treated separately. In particular, KBV owners will not be offered point swaps; our ownership will simply terminate.

I believe that if you have a confirmed exchange out of KBV and in to some other resort, those will be honored. However, if your are exchanging as an inbound to KBV, the resort will not be operational. If you are an inbound, call RCI as soon as possible.

 

[magmue]

On a whim I decided to search “Kauai beach villas bankruptcy” and got a hit. It looks like they filed for chapter 11 in Hawaii bankruptcy court on December 5.

Case number: 1:25-bk-01103 - Association of Apartment Owners of Kauai Beach Vil - Hawaii Bankruptcy Court

Case number: 1:25-bk-01103 - Association of Apartment Owners of Kauai Beach Vil - Hawaii Bankruptcy Court

www.inforuptcy.com

They probably just forgot to tell us.

 

[jacknsara]

On a whim I decided to search “Kauai beach villas bankruptcy” and got a hit. It looks like they filed for chapter 11 in Hawaii bankruptcy court on December 5.

Case number: 1:25-bk-01103 - Association of Apartment Owners of Kauai Beach Vil - Hawaii Bankruptcy Court

Case number: 1:25-bk-01103 - Association of Apartment Owners of Kauai Beach Vil - Hawaii Bankruptcy Court

www.inforuptcy.com

They probably just forgot to tell us.

And forgot to have all the required documents for the filing.

 

[Kotoraiki]

I just received this email..not decided what to do

Dear Owner,

Our records show that you own points and/or deeded week(s) at Club Wyndham Kauai Beach Villas. We have an important update that will impact the points or week(s) linked to your contract(s) at this resort.

As an owner at the Club Wyndham Kauai Beach Villas in Lihue, HI, please be advised that the Association of Apartment Owners of Kauai Beach Villas (“KBV Master Association”), has voted to file for Chapter 11 bankruptcy and proceed with a sale of the property. The Kauai Beach Villas Interval Owners Association (“KBV Timeshare Association”) has also voted to cease operations for their interest in the resort with the last check-ins for timeshare suites December 31, 2025 (Some portions of the resort not governed by the KBV Timeshare Association may have continued occupancy in some capacity, but this does not include any units within the KBV Timeshare Association.)   

As a result of the decision, you will experience a downgrade of VIP status after the Club Wyndham Kauai Beach Villas contract, and the associated points are removed from your Club Wyndham Plus membership. This change may influence your Club Wyndham Plus membership and upcoming travel arrangements. Please be assured that all current reservations made either with points affiliated with your Club Wyndham Kauai Beach Villas ownership or deeded week(s) will be honored through December 31, 2025.     

We are dedicated to providing you with alternatives to retain your ownership and ownership benefits. As such, if you are current with your maintenance fees, no loan balance, and in good standing with program rules and guidelines you may qualify to choose to swap your ownership interest for the equivalent Club Wyndham Access points at no additional cost, so the ownership remains whole, if desired. Maintenance fees and Club Wyndham Plus program fee will apply to all contracts under your membership. To indicate your interest for this contract swap, please fill out the form below and a representative from Club Wyndham will reach out via telephone or email. Please note: if you accept the offer to swap for Club Wyndham Access points, you will not receive any net proceeds from the sale of the property. If we do not hear from you about the Club Wyndham Access points within 30 days, we will assume you are not interested. 

To fill out the form, please click here: Kauai Beach Villas

For any questions about how this impacts your ownership ─ including maintenance fees, reservations, or other membership-related items — you can reach a dedicated team within Club Wyndham at CWAInquiries@wyn.com, or call them at 877-883-3640. 

Sincerely,   
Your Club Wyndham Management Team