This past week, two local businesses filed for voluntary Chapter 11 bankruptcy in the District of the Virgin Islands.
Magens Point Inc., which operates Flamboyan On the Bay Resort & Villas (previously Magens Point Resort), reportedly owes over $10.2 million. Creditors include local and federal tax authorities, the Virgin Islands Department of Labor, and the Water and Power Authority, among others. All are disputed except the largest debt – just over $5.2 million owed to Michael Shelby, principal at the company. The company's assets are listed at between $1 million and $10 million.
Sister company Tropic Leisure Corp reportedly owes just under $1.8 million, with the biggest creditor being the Small Business Administration, which disbursed over a million dollars in Covid-19 relief and loans to the company.
Bankruptcy Judge Mary Walrath has set the first meeting of creditors in both matters for July 17. Magens Point Inc. creditors will meet at 1:00 p.m., with those owed by Tropic Leisure Corp expected to convene at 2 p.m.
