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

[tango]

Please do not be dismayed by threats of a future special assessment. It’s true that legal cases can be expensive. The AOAO has access to reserves of $2.6 million, which should go quite a ways. In addition, I’m sure that any excess unpaid charges will simply be deducted from settlements from any sale of property. I am not expecting anything from KBV, nor do I intend to send any more money that way.

 

[joyful]

Thank you for your reassurance.
I certainly will NOT pay another special assessment.
Susan

 

[schreff]

Board members must act in good faith, with prudent fiduciary care, and in the best interest of ALL owners, After reading the new posts, it sure doesn't seem like neither the BOD nor Wyndham gives a damn about owners.
.
Who is serving on the IOA Board of Directors. And how can they be reached?

Why hasn't the BOD and Wyndham guided us through this process in a clear and simple way? Another special assessment is insane!!!!!

 

[schreff]

Aloha,
Assuming you want out like most of us, Do Nothing. It’s that simple for now.
Jack

Is the site with the bylaws, etc. still up?

 

[jacknsara]

Is the site with the bylaws, etc. still up?

Yes. See

KBV Chapter 11 progress in court

Please remember that the severe structural defects go back a couple decades to the original Developer Pahio and not Wyndham. Pahio apparently had no oversight of the Construction. Or chose not to exercise their oversight. In Oregon the Construction Trade has gotten so bad that once the Prime...

tugbbs.com

 

[Flocamp]

Aloha,
Assuming you want out like most of us, Do Nothing. It’s that simple for now.
Jack

Thanks Jack. That was my understanding also before I received the bankruptcy notice yesterday and there was new language in it saying some items were approved snd some denied.

 

[joyful]

4

 

[Jhuskey101]

If anyone wants detailed information on the court proceedings. The web page link below has audio recording of the court hearings.

Association of Apartment Owners of Kauai Beach Villas

 

[Flocamp]

If anyone wants detailed information on the court proceedings. The web page link below has audio recording of the court hearings.

Association of Apartment Owners of Kauai Beach Villas

Sounds like board was given access to 50% of reserves and there is another court appearance. Do we have access to the next court appearance?

 

[CO skier]

The couple owning Unit G21 are taking on the bankruptcy lawsuit pro se. (More delays and expenditures due to the action(s) of the whole unit owners.)

The closure timing is entirely dependent on how long the whole owners choose to pursue their lawsuit, just as it has been for the past 3 years. After 12/31/2025 it will be clear Wyndham had and has nothing to do with any delay to a "final resolution."

The filings provide some insight to the reason for the AOAO acquiring (two, and only two) timeshare intervals. It appears to be a necessary step to file the adversary proceeding.

The only thing I do not understand the implications of/reason for the second part of the vote; “To authorize the Directors for AOAO KBV to acquire or accept a unit or interval prior to to a bankruptcy filing by the AOAO”.

I'm not sure this is true. The ballot language of the second proposal, in full and emphasis added, states: "Authorize the Board of Directors of AOAO KBV to acuqire or accept a unit or interval prior to bankruptcy filing by the AOAO KBV." That's interval, singular, which suggests to me that they do not need to collect all of the intervals of an apartment (aka unit).

In the attachment, it further states that the Authorized Persons would be empowered to "acqui[re] or accept[] ... one or more units or intervals". Again, if i am parsing that correctly, it doesn't seem to require an entire unit/apartment.

Interestingly, the other resorts that are closing via the HOA Bankruptcy model appear not to have the transfer-prior-to-bankruptcy provision. So, there is something different about KBV. Could be the lawsuit,

III. SEСTION 363(h) CANNOT BE USED TO FORCE THE SALE OF UNITS THE AOAO DOES NOT CO-OWN

5. The Debtor intends to file an adversary proceeding under 11 U.S.C. § 363(h) on or around March 31, 2026, seeking to force the sale of the entire Project - including the Roys' Unit G21- based on the AOAO's ownership of two every-other-year timeshare intervals comprising approximately 0.0158% of the Project.

6. Section 363(h) authorizes a trustee or debtor-in-possession to sell both the estate's interest and the interest of a co-owner in property held as tenants in common. The critical requirement is genuine co-ownership of the same property interest. The AOAO owns specific timeshare intervals. The Roys own Unit G21. These are entirely separate, distinct units of ownership. The AOAO does not co-own Unit G21 and the Roys do not co-own the AOAO's intervals.

____________________________________________________________________________________________________________________________________________________________________________________

The filings bring up some interesting points, and are worth a read, if you have the time. Are the unit G21 owners filing these bankruptcy responses to negotiate a secret, individual settlement with the AOAO?

 

[CO skier]

Please do not be dismayed by threats of a future special assessment. It’s true that legal cases can be expensive. The AOAO has access to reserves of $2.6 million, which should go quite a ways.

$600,000 legal fees in April alone.

Note the planned transfer of $1M from the reserve account for bankruptcy expenses.

 

[tango]

The filings bring up some interesting points, and are worth a read, if you have the time. Are the unit G21 owners filing these bankruptcy responses to negotiate a secret, individual settlement with the AOAO?

Sort of like watching reality TV for entertainment? Personally, would probably not understand it even if I had the interest and time. Different strokes…

 

[benoma88]

Bankruptcy lawsuit costing $600k a month should yield more information to owners/stakeholders.
$2.6M reserves will deplete in less than 4 months.
Anyone hear news or rumors of progress?

 

[schreff]

What happens when the reserves run out?

 

[Geebrr]

Received an email dated June 16th from the AOAO Board of Directors. Seems like it is just an informational letter letting us know that the company doing the work on Building G is pulling its equipment off the property. Anyone have any other information or thoughts?

 

[DeniseM]

They haven't been paid.

 

[ecwinch]

On a different note, has any Club Wyndham owner with KBV contracts noticed that their contracts have been cancelled in the Club Wyndham portal? Just logged into to discover mine have.

Also has anyone heard anything lately about the CWA swap? I have not been contacted since March.

 

[schreff]

I maybe in the wrong forum but it doesn't look like there is action elsewhere. I just received the below and am wondering what the heck is going on the this BOD? Unlike many, I have paid the last special assessment for which we were promised would be returned. it was not and now this smells like another special assessment. There are some strange things going on the this BOD and the past BODs which actually had Wyndham representation on and according to my research did take an active part voting on issues which related to Wyndham that they should have not voted. Now, the special assessment which we were all trying to avoid may be resurrected?????
Please share your interpretation of the below and I hope I am wrong. Posted in another thread too.
June 16, 2026
Owners,
This is an update from the AOAO Board of Directors regarding “Project Reoccupy”. As you should recall, the Board of Directors was originally provided with an estimate of approximately $4.1 million to reopen Buildings G & H. As you should also recall, after the owners voted to put the Association into a Chapter 11 bankruptcy proceeding, the Board was informed that Building G, the first building to be worked on for Project Reoccupy, had more structural issues that anticipated, and the estimated costs to repair such structural issues would likely exceed the special assessment funds that were collected for both buildings. At that point, and given the high likelihood of needing another special assessment of approximately $4.1 million, the Board voted to temporarily suspend work on Building G and wait to determine whether there were any other options in Bankruptcy Court under the guidance of HILCO, who is currently marketing the property, and through the filing of the adversary action, or lawsuit, in the Bankruptcy Court, to sell the entire property.
While the bankruptcy process is pending, the Board has recently been informed by Seal Masters Hawaii, the company that was performing the work on Building G, that its tools and other equipment at Kauai Beach Villas are needed, and it will need to demobilize from the project. This update does not mean that the Board has abandoned Project Reoccupy. The Board is still open to other options with the guidance of its professionals and will provide a furtherupdatewhenthisinformationbecomesavailable. Thankyouforyourunderstanding.
The AOAO Board of Directors Kauai Beach Villas

 

[bnoble]

I just checked; mine has been removed. I had asked to be considered for a swap, but was never contacted. I am not too disappoined about that. I'm not sure I needed more points. If I do, I will try to get a contract with a lower $/KI ratio.

 

[benoma88]

I am in the dark regarding "project re-occupy"?? And I do not know what $/KI means? (private conversation or for all KBV Tuggers?)

Do I hold illusion that KBV will be liquidated with proceeds disbursed as voted by owners? Or vote on bankruptcy was to reorganize, remodel and re-occupy? Letter to BOD to these questions are unanswered.

Has BOD posted information for owner/stakeholder benefit as to what is and the scope of "project re -occupy" ?? If yes, where can I find project re-occupy text & explanation?

IF "the Board voted to temporarily suspend work on Building G", AND "the Board has recently been informed by Seal Masters Hawaii, the company that was performing the work on Building G, that its tools and other equipment at Kauai Beach Villas are needed, and it will need to demobilize from the project"....what 'work' were they performing?

So many questions, is there a clear path forward?... Thoughts anyone, it's getting murky?

 

[schreff]

On a different note, has any Club Wyndham owner with KBV contracts noticed that their contracts have been cancelled in the Club Wyndham portal? Just logged into to discover mine have.

Also has anyone heard anything lately about the CWA swap? I have not been contacted since March.

We had our third or fourth contact from Wyndham about the CWA swap recently. Wyndham scheduled the calls but the Wyndham call backs with CWA specialists were never made.

Also, we were told that Wyndham would call us within a day or so in November 2025 after attending an update at Wyndham Shawnee which too was suppose to discuss the SWAP. I thought that there was a strict deadline?

 

[ecwinch]

We had our third or fourth contact from Wyndham about the CWA swap recently. Wyndham scheduled the calls but the Wyndham call backs with CWA specialists were never made.

Also, we were told that Wyndham would call us within a day or so in November 2025 after attending an update at Wyndham Shawnee which too was suppose to discuss the SWAP. I thought that there was a strict deadline?

Very similar pattern of contact on my end.

 

[bnoble]

I do not know what $/KI means?

Sorry, I meant "$/K" --- as in, a maintenance-fee-per-point that is lower than CWA's.

I have a sneaking suspicion that one reason I was not contacted is that I was in the middle of splitting the relevant account during a divorce, and I got the "new" account number after we'd requested consideration. It would not surprise me if I fell through the cracks when that happened. As I said upthread, I'm more or less fine with that.

 

[HitchHiker71]

We had our third or fourth contact from Wyndham about the CWA swap recently. Wyndham scheduled the calls but the Wyndham call backs with CWA specialists were never made.

Also, we were told that Wyndham would call us within a day or so in November 2025 after attending an update at Wyndham Shawnee which too was suppose to discuss the SWAP. I thought that there was a strict deadline?

Never believe anything told to you at a sales update - regardless of the resort location LOL. Sales is clueless about any/all operational business aspects especially at Wyndham, and will say pretty much anything to make a sale IME.

 

[Zeke_62]

We had our third or fourth contact from Wyndham about the CWA swap recently. Wyndham scheduled the calls but the Wyndham call backs with CWA specialists were never made.

Also, we were told that Wyndham would call us within a day or so in November 2025 after attending an update at Wyndham Shawnee which too was suppose to discuss the SWAP. I thought that there was a strict deadline?

Are you dealing with Ricky Rojas? I've made 3 appointments. The first one he called my daughter instead of me. Her number is on the account, as is mine. I put my number on the Swap meeting sign up. She immediately forwarded his message to me, and I called him right back but he did not answer. The next 2 times I scheduled meetings he did not call. I called his number and he does not answer. I've sent him emails and he does not reply.

Anyone else?