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

[skcamerabuff]

Aloha,
I believe the notice we all received indicated that the lawsuit would be suspended by the bankruptcy. My opinion is that Wyndham has / had no intention of settling for more than a token amount to cut off future legal costs.
Jack

I listened to zoom by phone while out and about. I forget the size of the quorum present but was substantially over 50%.
The first measure passed by ~70% for and ~15% against. I’m not using a keyboard now so whatever comments I might have will have to wait.
During the conversation prior to the second measure it occurred to me that Pahio (Wyndham) might be planning to transfer their entire ownership to the AOAO prior to AOAO filing for bankruptcy. The zoom session ended before the vote on second measure was taken.

Thank You for the info. It was really helpful. I will be relieved when we are out of it. Since I bought our KBV intervals on the secondary market 20 yrs ago, we definitely had 20 yrs in KBV. We had switched it to pts and usually stayed at Bali Hai Villas in Princeville for most of the 3-4 weeks. Great memories of KBV but we can move forward with so much less maintenance fees and no assessment fees !!!! Thank You everyone for contributing to this thread.

 

[Lowry]

Those were the ballots (a) sent via mail and (b) voted online or returned by mail.

Thanks for the clarification

 

[Geebrr]

Thank You for the info. It was really helpful. I will be relieved when we are out of it. Since I bought our KBV intervals on the secondary market 20 yrs ago, we definitely had 20 yrs in KBV. We had switched it to pts and usually stayed at Bali Hai Villas in Princeville for most of the 3-4 weeks. Great memories of KBV but we can move forward with so much less maintenance fees and no assessment fees !!!! Thank You everyone for contributing to this thread.

Hi, because of personal reasons I missed the meeting on the 19th. Can anyone bring me up to date on what happened? Where do we go from here? Thanks for any info!

 

[DeniseM]

Geebrr - All of the meeting info is in this thread where you posted. Scroll up.

 

[jacknsara]

Aloha,
For KBV owners just finding this thread for the first time, please go back to this post https://tugbbs.com/forums/threads/new-thread-kbv-vote-for-chapter-11-bankruptcy.377007/post-3206299 and read to the present before asking what happened at the AOAO special meeting.
Mahalo
Jack

 

[Dan Hedman]

I'm late to the party too. We have paid every two years for over 20 years. Our dues are coming up in January, 2026. Do you guys recommend we pay them or are they likely to fold? I realize this is all speculation. Thanks in advance.

 

[bnoble]

I suspect we will not get bills for 2026, and if we do, it will be for a very different (and much smaller) amount---only what is required to fund the resort's wind-down on top of what already happens to be present in reserves. I think it is very likely that the property will not be operating as a timeshare resort come January.

 

[Twest]

I am an every other year owner. Have read the thread and followed the vote.
Thought I’d take a flyer and email the AOAO to see if they want my unit/deed. I don’t want it.
See attached for their unusually quick 36 hr reply.

Aloha,
Thank you for your email. The AOAO is not looking to acquire your unit. Here is the current verbiage on relinquishing your interval.

From AOAO:
The Interval Owners Association is responsible for maintaining the interior of the apartments in the Association. The costs are funded by your annual maintenance fees. The Association did not sell you your interval. Until you transfer the title to a new owner you are responsible for payment of maintenance fees. The Association is not aware of anyone interested in purchasing Kauai Beach Villas Intervals. You can give it away if you find someone who will accept responsibility for the maintenance fee. You have a deed for the interval. The only way to transfer the interval to another person is to execute a deed of transfer or a quit claim deed. The deed needs to be registered with Kauai County and transfer fees paid.

Now I know where I stand there.

 

[schreff]

There are many things that a prudent BODs should share with owners like: How much is in reserves at present and what can they be used for; What happens to the special assessment monies already paid by some owners and are there still delinquencies; Are these funds in a separate fund account awaiting disbursement or are they co-mingled in a single operating fund; When specifically will the resort be closed for occupancy; What are the specific BOD's planned steps under KBV's Chapter 11; Can reserve funds and special assessment funds be used for purposes other than those designated by the original plans; How are legal fees to be paid; Has there been any prospective buyers; How does bankruptcy affect all of the above????

I am not an attorney but I believe that even though KBV is in bankruptcy that owners are still responsible for any costs the resort has including all essential expenses. As most know, bankruptcy can take years and cost lots of bucks. Why wasn't this all explained to us prior to the vote?

 

[bnoble]

This might have no bearing on anything at all, but all three remaining defendants (the individual Board members, the AOAO, and PRI) each filed a motion for summary judgement on the 16th. They are lengthy, at about 150 pages each. I have not purchased copies of any of them, but I assume they are substantively equivalent. The same counsel filed all three.

 

[bnoble]

I also have been meaning to comment on this part, but don't think I have yet:

The first measure passed by ~70% for and ~15% against.

If that ~70% was not at least 75%, that might explain why the do-not-remediate vote kept getting tabled. This suggests that they would not have gotten the 3/4ths majority they needed.

 

[bnoble]

I did end up buying the AOAO motion. It is potentially quite interesting. It includes the Defendants' expert report, plus excerpts of the depositions of board members and plaintiffs. Naturally, these exceprts are going to be favorable to the Defendants, but still---probably will be interesting if macabre reading.

https://drive.google.com/file/d/1pTWANTTzYrnWP6x_Ofev4Puo-S_FxExE/view?usp=share_link

Edited to add: One interesting tidbit: One of the current AOAO Board members is a whole owner in Building G, and purchased it at some point during 2020. Be interesting to see what the sales price was...

That's not quite right; in the relevant deposition, it seems more likely to be an interval than a whole unit. And the depo excerpts was not particularly interesting to me, but the expert report was.

 

[DeniseM]

I read through a lot of it. Are the yellow highlights yours? Are there pages missing? Sad that the board members have such poor memories - should be disqualifying!

 

[bnoble]

No, the highlights are not mine---that would have been done to identify which portions they are quoting in their filing. LIkewise, they include only the segments of the transcript needed to contain those citations.

 

[DeniseM]

A few thoughts:

- The BOD's claim that all of the buildings at KBV are being maintained identically is a blatant lie. They even used an old picture, or a picture of a different building as false evidence.

- The last time we stayed at KBV, at the end of 2019, we met the newish Mgr, Rhonda Brown, for the first time and did an owners update with her. I asked her if she knew that some of the G & H units have permanently locked sliding glass doors out to the lanai, because they were considered dangerous. She said she didn't know that, and by the surprised look on her face, I don't think she did. This wasn't new - they had been locked for a few years.

- We will be on Kauai in Nov. and I will post some current pictures.