How do I escape the KBV nightmare???

[slweil]

I am looking to surrender my timeshare at Pahio Kauai Beach Villas. Of course there is no way to get a hold of anyone in order to do that right now. Wyndham wants no part of it, and has less information that we owners do. I don’t want to waste any more money there. Just a summary of my visit last week: Got there early, let them know, they couldn’t check me in yet as my room wasn’t ready. Nowhere to eat on property except the poolside bar that is part of the Outrigger Resort. Came back just after 4 pm and the computer was down, could not check in until after 5 pm. Even then, my room wasn’t ready. Once I was in the room, the furniture is probably 20 years old, except the bed. The bed was fabulous. The tech was also great. Nice TVs, wifi, etc. The room smelled like mildew, the repairs had been sloppy at best. I spend only 1 night there. Despite the comfy bed, I went to the Sheraton, at least they had a beach that was safe to go in the water. The first thing they said upon check in was not to go into the water because the undertow was too unsafe. No thanks.

 

[DeniseM]

As you probably know, the resort is declaring bankruptcy, and it will close Dec. 31st. All you can do it let the process take it's course.

 

[bnoble]

The good news is you will be rid of it before too much longer, one way or another. I also suspect there will be little to nothing in the way of ongoing costs going forward.

 

[tango]

You sound like this is the first time that you have been there. Please say that you have not only just bought it.

 

[magmue]

Please say that you have not only just bought it.

It looks like @slweil has owned there for awhile - s/he's other previous post was in December 2022 about KBV MF fees.

 

[slweil]

It looks like @slweil has owned there for awhile - s/he's other previous post was in December 2022 about KBV MF fees.

I bought it in 2002. It’s an alternate year time share and I haven’t been there since 2006 for a number of reasons I was on Kauai in 2021 but stayed at the West in Princeville I attempted to add on some time at thWest in Princeville I attempted to add on some time at KBV but they said they were full somehow I’m not so sure that’s true.

 

[slweil]

The good news is you will be rid of it before too much longer, one way or another. I also suspect there will be little to nothing in the way of ongoing costs going forward.

chapter 11‘s can take years and they can still operate during that time and therefore charge maintenance fees during that time. Only if they stay shut down, do I not have to pay my maintenance fees

 

[DeniseM]

Have you received the letters and voting material about the upcoming bankruptcy? Wyndham has ended their management contract with Pahio as of Dec. 31st, and the board just sent out a letter stating that the resort is closing then. It seems extremely unlikely that they will re-open.

MORE INFO

 

[slweil]

I certainly hope not. But it doesn’t mean it won’t happen. That’s my concern. I wanna make sure that I’m no longer responsible for paying maintenance fees

 

[slweil]

Chapter 11’s can have a trustee appointed and someone to manage the corporation so that income can continue in order to pay off the creditors, if that seems feasible. My hope is it does not seem feasible. I just don’t know why they didn’t file a straight chapter 7 if it was not their plan to continue to operate

 

[bnoble]

Take a deep breath and read the various threads. This resort is never going to reopen. The buildings are tear-downs, and everyone in a position to make this decision knows it. It has been clear from the first parittion vote more than two years ago that closure is the end game.

 

[slabeaume]

chapter 11‘s can take years and they can still operate during that time and therefore charge maintenance fees during that time. Only if they stay shut down, do I not have to pay my maintenance fees

got this email yesterday---
Aloha Kauai Beach Villas Interval Owner,

On October 7th, Wiss Janny Elstner (WJE) provided the Kauai Beach Villas AOAO and IOA Boards of Directors an update on the condition of the association's buildings. Upon being made aware of WJE's additional findings of potentially unsafe conditions resulting from building deterioration, and upon WJE's recommendation, the IOA Board of Directors determined that for the safety of all timeshare owners and guests that all timeshare unit occupancy will be discontinued as of January 1, 2026.

If you are a deeded weeks owner currently holding an existing reservation in 2026, you will be contacted by the PAHIO Owner Services team for further details concerning the cancellation of your reservation(s). The PAHIO Owner Services team may also be contacted directly at (866) 523-8477. If you are a Club Wyndham points owner, you will be contacted by Wyndham's Owner Services team to discuss options which may include cancellation, rebooking to another CWP-affiliated resort or other Kauai/Hawaii-based options. Wyndham's Owner Services team may also be contacted directly at (877) 883-3640. If you have banked your week with RCI, all points banked with RCI need to be used prior to the account becoming inactive with the bankruptcy and sale of the property. The RCI Owner Services team may also be contacted directly at (800) 338-7777.

For all remaining guests and owners arriving to Kauai Beach Villas this year, please be informed that, upon arrival to the resort, you will be provided safety information including but not limited to the necessary prohibition of accessing all 2nd/3rd floor unit lanais/balconies due to safety concerns. Additionally, Buildings G and H remain closed for ongoing structural repairs.
Mahalo.

 

[jacknsara]

Chapter 11’s can have a trustee appointed and someone to manage the corporation so that income can continue in order to pay off the creditors, if that seems feasible. My hope is it does not seem feasible. I just don’t know why they didn’t file a straight chapter 7 if it was not their plan to continue to operate

Aloha,
Why do you believe the type of bankruptcy that the AOAO is or will be pursuing is chapter 11?
I’m not a lawyer but my guess is the IOA’s decision depends on the AOAO.
We all know that Wyndham has much influence in both boards.
Jack

 

[DeniseM]

The ballot listed Chapter 11 Bankruptcy.

 

[schreff]

I am wondering why we never got a recap from the BOD and/or Wyndham management as to who paid the small special assessment. We paid but my communications were never answered when I questioned about what happened to the monies and who paid. I believe someone once said that these funds would be refunded if the special assessment wasn't completed.

 

[Pissed KBV owner]

Okay, so here we are, this is sickening. So Purchased back in 1999, PIF, all the HOA fees have been paid in good faith for more than 25 years now.. This is an ongoing disaster and negligence filled with infighting for control. What is an owners recourse? Not only that but the weeks stacked from RCI are nulled out? Many planned for future vacations and paid to extend etc. SO we lose everything? NOW... if this sells do we own a piece for recuperation post sale? Just the land is a gold mine. SO many question so little time to do anything about it. Where is the paperwork on this process? I received an email to let me know this is happening.
So furious!

 

[bnoble]

I doubt you will lose prior weeks-based deposits. I do expect you will lose 2026 and beyond if they have been deposited already.

If you ever converted to Wyndham points, and this is your only Wyndham account, you will lose access to deposited points when your account is terminated, but not confirmed exchanges.

NOW... if this sells do we own a piece for recuperation post sale?

Yes. I suspect it will not be a huge payout but it will be something.

 

[slweil]

The paperwork does say it will be a Chapter 11. The last communication I had said they would be filing this month and we would get something from the law firm handling it. My concern is, if someone buys it, we will be obligated to continue even if they tear it all down and rebuild, I think. If it becomes another timeshare, they’re buying our contracts, and since it’s a freehold (I think that’s the term) it’s the land that keeps us obligated. In the last 20+ years, the beach has changed and the first thing they told me upon checking in was not to try swimming in the ocean because it wasn’t safe. I am not interested in owning a beachfront timeshare that I can’t do more than splash in the water ankle deep. What’s the point? And @Pissed KBV owner, yes we absolutely will still be stuck if this sells. We still own, and still will have to pay maintenance fees if they ever reopen.

 

[DeniseM]

No - If they sell, timeshare owners will no longer own the timeshares, or any part of it.

 

[slweil]

My sister is a bankruptcy attorney. In her words:
“Every timeshare bankruptcy is different. Unless there are “vacant” units, a sale is unlikely because the new owner would have to invest in all the repairs and maintenance costs before they could sell new units.


In reality, there will ultimately be a some kind of sale, even if there is a foreclosure first and the bank sells the property. That won’t matter to you because the foreclosure would wipe out the timeshare interests.


A bankruptcy alone won’t wipe out timeshare interests in most cases because the timeshare is technically a property interest.


If they get to the point of filing a plan of reorganization, you might have choices about whether you want to keep it or surrender it.


My guess is that they might file, but without knowing what the debt structure is, I can’t predict what will happen.”

So, unless there is a foreclosure as part of the bankruptcy, we still are stuck!!!!!!!!!!!!!!!!!!

 

[DeniseM]

I don't believe it....

 

[SteveinHNL]

Sorry to ask an ignorant question, but what happens to owners who simply stop paying?

 

[CO skier]

In reality, there will ultimately be a some kind of sale, even if there is a foreclosure first and the bank sells the property. That won’t matter to you because the foreclosure would wipe out the timeshare interests.

If your sister bankruptcy attorney is telling you this, she is an idiot. There is no "bank" foreclosing and "selling the property." Good grief.

 

[bnoble]

If it works the way it was suggested during the remediation vote, they will have their amounts owed deducted from their share of the proceeds. The bankruptcy process likely means no one has to go to the trouble of individual foreclosures.

Every timeshare bankruptcy is different.

This the most useful thing you posted. And, if you've been following along from the beginning, you'd know that these buildings are tear-downs. There is no way anyone is dumb enough to try to buy it as-is and continue to run it as a timeshare.

 

[tango]

Sorry to ask an ignorant question, but what happens to owners who simply stop paying?

In other words, probably nothing. Any amounts owed will simply be deducted from proceeds, if any, of the eventual liquidation.