Sea Island Plans Sale To Private Investors

Bankrupt resort and real estate developer Sea Island Company will sell its assets to a new company formed by investors Oaktree Capital Management, Avenue Capital Group, Anschutz Corporation and Starwood Capital Group. Financial terms of the sale – which is part of Sea Island’s Chapter 11 bankruptcy plan – were not released.

PRESS RELEASE
Sea Island Company, a private resort and real estate development company today announced that Judge John S. Dalis of the United States Bankruptcy Court for the Southern District of Georgia confirmed the Company’s Amended and Restated Joint Chapter 11 Plan. Under the terms of the Plan, the Company expects, by the end of the year, to close on the sale of substantially all of its assets to Sea Island Acquisition LP (“SIA”), a limited partnership comprising investment funds managed by the global investment firms Oaktree Capital Management, L.P. and Avenue Capital Group, The Anschutz Corporation and Starwood Capital Group.

The Plan was supported by Sea Island Company’s senior secured lenders, supported by the Official Committee of Unsecured Creditors and, as of the time of the hearing, had been overwhelmingly approved by its other creditors.

“I am very pleased that we were able to achieve a consensual plan that addresses the needs and interests of our members, guests, vendors and our employees, who continue to provide the kind of genuine, heartfelt service for which Sea Island is so well known,” stated Bill Jones III, Chairman and Chief Executive Officers of Sea Island Company. “Our buyers understand and appreciate that it is this kind of support and dedication that has helped make Sea Island so special for many years. Today is a new beginning for Sea Island and a continuation of our great heritage.”

Sea Island Company’s financial advisors are FTI Consulting and Goldman Sachs & Co., and its legal advisor is King & Spalding LLP.

Information about Sea Island Company’s Chapter 11 proceedings is available on the Company’s website at www.ourfuture.seaisland.com. Information about the claims process and court filings can be accessed at www.epiqsystems.com.

About Oaktree Capital Management

Oaktree Capital Management L.P. is an international investment manager headquartered in Los Angeles with approximately $79 billion in assets under management as of September 30, 2010. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in fixed income, private equity and real estate. Oaktree’s clients include primarily institutional investors, including pension plans, foundations and sovereign funds, and high net worth individuals. Oaktree was founded in 1995 by a group of principals who have worked together since the mid-1980s. Headquartered in Los Angeles, the firm today has approximately 600 employees and offices in 13 cities worldwide.

About Avenue Capital Group

Avenue Capital Group is a global investment firm focused on undervalued opportunities in the private and public debt, equity and real estate in the U.S., Asia and Europe. The firm is headquartered in New York, with offices in London, Luxembourg and Munich, and eight offices throughout Asia. Avenue oversees approximately $19.6 billion of assets under management as of September 30, 2010 on behalf of a sophisticated global base of institutional investors, the majority of which is pension funds, and also includes family offices, foundations, insurance companies and sovereign wealth funds. Avenue was founded in 1995 and draws on the skills and experience of more than 300 employees worldwide.

About The Anschutz Corporation

The Anschutz Corporation is a privately-held investment and holding company. The company was founded in 1965 and is based in Denver, Colorado. The Anschutz Corporation manages a diversified, worldwide portfolio of investments in the fields of oil and gas exploration, renewable energy, agriculture, real estate, telecommunications, transportation, sports and entertainment, film production and exhibition hospitality and newspaper and internet publishing.

About Starwood Capital Group Global, LLC

Starwood Capital Group is a private, U.S.-based investment firm with a core focus on global real estate. Since the group’s inception in 1991, the firm, through its various funds, has invested nearly $8 billion of equity capital, representing over $25 billion in assets. Starwood Capital Group currently has approximately $16 billion of assets under management. Starwood Capital Group maintains 10 offices around the world. Starwood Capital Group has a focus on hospitality and resorts but has invested in nearly every class of real estate on a global basis including office, retail, residential, senior housing and golf assets. Starwood Capital Group and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets. Additional information about Starwood Capital may be found at www.starwoodcapital.com.

About Sea Island

A private resort and real estate development company founded in 1926, Sea Island Company today owns and operates Sea Island Resorts, featuring two of the world’s most exceptional destinations: the Forbes Five-Star Cloister at Sea Island and The Lodge at Sea Island Golf Club, a Forbes Five-Star and AAA Five-Diamond property. Sea Island Resorts encompasses The Golf Learning Center, two championship golf courses, the Forbes Five-Star Georgian Room restaurant, Sea Island Beach Club, Camp Cloister the Tennis Club, Yacht Club, Shooting School and Forbes Five-Star Cloister Spa. A recent transformation of the resort has married the company’s storied history with unparalleled 21st century amenities. Sea Island’s website is www.seaisland.com.

Sea Island Company | Michael Geczi, 312.553.6735 | michael.geczi@fd.com | SOURCE: Sea Island Company