Reorganization

Overview
General Questions
Club Member Questions
Court Documents

Despite the existence of significant equity in Fiddler's Creek, the credit crisis that has gripped the nation combined with the meltdown of the financial markets have caused its developer, Fiddler's Creek LLC and certain of its affiliates, to file chapter 11 bankruptcy protection in order to preserve the existing substantial equity. Gulf Bay Capital Inc, an investment affiliate of the Gulf Bay Group of Companies, has agreed to provide a Debtor-in-Possession loan facility that will enable Fiddler's Creek to continue through this reorganization - staffed by its full complement of current employees - to deliver extraordinary lifestyle experiences, operating and maintaining the Golf Club, Tarpon Club and other facilities and amenities with consistent high standards of excellence and customer service of one of the best resort communities in the country.

Though previously unimaginable, this voluntary step for Fiddler's Creek will ensure that the long-term goals for the community are not disrupted and that each owner's value in their homes and the amenities that members enjoy are preserved. Fiddler's Creek is grateful for owners' and members' cooperation during this period. Updates about the development's anticipated expeditious progression through this process over the next few months will be provided to the members and visitors of Fiddler's Creek. Representatives of the community will be available to answer questions via email (reorganization@fiddlerscreek.com)




General Questions

  • Why is Fiddler's Creek filing Chapter 11?
    Despite holding more equity than debt in Fiddler's Creek, the credit crisis and the meltdown of the financial markets have caused its developer, Fiddler's Creek LLC, to be unable to renew its working capital line of credit. A lender that had agreed in 2008 to provide such a credit line, itself became financially stressed and was unable to deliver. This change coupled with declines in pricing and the sale of new homes have led Fiddler's Creek LLC to file voluntary petitions to restructure its debt and capital under the provisions of the Chapter 11 Bankruptcy Code.

  • What does this mean to me?
    Members – With court approval of the reorganization, Fiddler's Creek will continue to be staffed by its full complement of current employees and to deliver extraordinary lifestyle experiences, operating and maintaining the Golf Club, Tarpon Club and other facilities and amenities with consistent high standards of excellence and customer service. Customer satisfaction will remain Fiddler's Creek's top priority. Fiddler's Creek will also continue without interruption to sell, build and deliver single-family custom homes. Fiddler's Creek will seek third-party builders to purchase lots and build residences in accordance with the Fiddler's Creek Design Review guidelines, which have set the architectural standards from inception.

    Employees – With court approval of its reorganization, Fiddler's Creek will continue to pay and provide benefits to its employees according to company policy.

  • What is the Company's equity position and what will it be upon its emergence from chapter 11?
    In 2007, the real estate assets of Fiddler's Creek had a discounted value of $700 million. At the time of the Chapter 11 filing, based on a 2010 MAI Appraisal Fiddler's Creek LLC declared the aggregate value of its real estate assets on a bulk sale discounted basis of $312 million and mortgage debt of $160 million, excluding CDD bonds. Chapter 11 provides the most efficient and timely process for Fiddler's Creek to restructure its debt and bring its capital structure in line with today's market realities. Gulf Bay Capital Inc, an investment affiliate of the Gulf Bay Group of Companies, has agreed to provide a $25 million Debtor-in-Possession that will cover the community's overhead expenses during the reorganization.

  • Why have homes in Fiddler’s Creek been selling for significantly less than original retail prices?
    Prices are decreasing as banks begin to sell foreclosured properties. In some instances, for example, an out-of-town lender has one unit foreclosed in a particular village. Because of the Troubled Asset Relief Program (TARP) developed to address the subprime mortgage crisis, banks are able to sell homes for prices with which no developer or homeowner can compete. Fortunately, these have been isolated cases in Fiddler's Creek, and we look forward to prices increasing as the market returns to normalcy. According to noted economist Hank Fishkind, there are approximately 9,975 permitted units in Fiddler's Creek's competitive set in Collier County. The Fiddler's Creek community has approximately 4,200 residential units – or 40 percent of the total in that total County competitive set – remaining to build.

  • To where can I direct additional questions?
    Representatives of the community will be available to answer questions via email at reorganization@fiddlerscreek.com



Club Member Questions

With Court approval Fiddler's Creek will continue through this reorganization - staffed by its full complement of current employees - to deliver extraordinary lifestyle experiences, operating and maintaining the Golf Club, Tarpon Club and other facilities and amenities with consistent high standards of excellence and customer service, and it will continue to sell, build and deliver homes without interruption. Customer satisfaction will remain Fiddler's Creek's top priority.

Golf Club:
  • Will the Golf Club remain open for play?
    Yes. The Golf Club Facilities will continue to operate on the current schedule. Please refer to the most recently posted schedule in the clubhouse for dates when the Golf Club is seasonally closed and for scheduled maintenance.

  • How do resigned members get their deposit back?
    The resignation policy will not change as a result of the reorganization. The refund policy will remain consistent under the current guidelines in the Membership Documents.

  • How are the payments of annual dues affected?
    There will be no changes to how annual dues are paid. Dues will remain payable on an annual basis, unless otherwise determined by the Golf Club.

  • Will maintenance suffer?
    The Golf Club will continue to maintain the golf course at the level expected of a world class facility. We will continue to strive to be recognized for excellence as we have consistently by the likes of Golf Week (five straight years), Links Magazine, and Travel and Leisure.

  • What happens to the loan on the Golf Club facilities?
    The loan for the golf course will be included in the bankruptcy filing, and with the approval of the Court it will be restructured as part of Fiddler's Creek's plan of reorganization.

Tarpon Club:
  • Will the Tarpon Club Marina and Beach Facility remain open for use?
    Yes. The facilities will continue to operate as usual. The Tarpon Club Marina will remain accessible to members who have a slip, 24 hours per day, 365 days per year. Access and use of the dry storage facility is available 7 days per week, 7AM - 4PM, November thru April and 5 days per week (Wednesday-Sunday), 7AM - 4PM, May thru October.

    As always, Tarpon Club member use of the Resort Facilities and Beach Access are subject to the hours of operation for each specific area. Please refer to the website at http://www.fiddlerscreek.com/resort-style-living/beaches-marina to reference the current hours of operation for the facilities.

  • What happens to my deposits?
    Deposits will continue to be maintained in the same manner as indicated in the Membership Agreement.

  • How are the payments of annual dues affected?
    There will be no changes to how annual dues are paid. The Tarpon Club will continue to determine the amount of dues, fees and charges to be payable by Members each year.

  • How do resigned members get money back?
    The resignation policy will not change as a result of the reorganization. The refund policy will remain consistent under the current guidelines in the Membership Documents.

  • Will maintenance suffer?
    The maintenance and operations of the Resort will continue to be maintained at its current high levels. The Resort Facilities at Marco Beach Ocean Resort have maintained a Four Diamond Rating for six consecutive years, and we will continue to strive for such accolades.

  • What happens to my lease of the rented slips or dry storage?
    Leases will be maintained in accordance to the court proceedings and remain in effect under the guidelines of the user's specific License Agreement.

  • Will access to the beach change?
    Members will continue to enjoy the Beach Resort year round. Social Members of the Tarpon Club will continue to have access to the beach and the Resort Facilities that are part of the Marco Beach Ocean Resort as outlined in the Membership Agreement.

  • What happens to the loan on the Tarpon Club facilities?
    The loan for the Tarpon Club facilities will be included in the bankruptcy filing and with the approval of the Court it will be restructured as part of Fiddler's Creek's plan of reorganization.

Foundation:
  • Will Members be able to use of facilities?
    Yes. The Club and Spa at Fiddler's Creek - including a clubhouse with outstanding swimming and social facilities, tennis facilities, sports and fitness club, meeting rooms and administrative offices - will be open for use to Members. (The Club and Spa has broken even for the past two years without any developer subsidy required.)

  • How will management of the Foundation be affected?
    Management of the Foundation will continue without interruption.

  • Are the restaurants going to be open?
    Yes, the restaurants will continue to operate on the current posted schedule.

  • What happens if I have a unit in process to sell?
    There will be no change as the result of the reorganization in the process by which owners are permitted to sell their units.

  • What happens to the loan on the club and spa?
    The loan on the Club and Spa facility is not scheduled to be included in the reorganization filing.

  • What happens with security (master contract)?
    The master contract with the Districts will continue to operate in accordance to the current guidelines and as indicated in the Access Control Services Agreement between the Fiddler's Creek Foundation, Inc and Fiddler's Creek Community Development District #1 and District #2.

  • Will architectural procedure rights remain in place?
    Yes, in order to preserve the integrity of Fiddler's Creek, the Declaration imposes restrictions on the use, maintenance and improvement of residential units, commercial units and the Villages. New construction and exterior renovations and improvements to residential units are subject to review and approval by a design review committee of the Developer. All homeowners are required to maintain their residential units in accordance with the standards established by the design review committee and/or standards established by a Village Association.

Developer-controlled Condo Associations
  • What happens to us as owners?
    With Court approval of the Debtor in Possession financing the developer will continue to pay its share of developer controlled associations.




Court Documents

* Note if you printed or downloaded the "Emergency Motion to Set Claims Bar Date" under Fiddler's Creek, LLC - Do NOT USE OR FILE Exhibit "A" Proof of Claim Form. You will receive a separate Form from the Clerk's office.

Click on an entity from the list below to see all associated documents.