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benefit of the Club and HCA members (and which indirectly benefit the <br /> Hokuli'a Project). <br /> 22. Some of the properties covered by the Umbrella Agreement <br /> were conveyed to the Club and HCA in separate closings on April 20, 2012, and <br /> June 22, 2012; other properties lack legal description and await subdivision <br /> approval from the County (which is currently in progress) before deeds may be <br /> recorded. <br /> 23. As described below, Oceanside and its affiliates, in the <br /> course of developing the project, became enmeshed in a number of lawsuits and, <br /> for this and other reasons, the project has never been completed. <br /> IV. <br /> SETBACKS AFFECTING THE DEBTORS' BUSINESS <br /> 24. Several adverse events caused the development of Hokuli'a <br /> to be significantly delayed. These events, in turn, caused the Debtors to default <br /> on certain of their financial and other obligations. <br /> A. The Kelly Litigation and Settlement <br /> 25. In September, 2000, after work on Hokuli'a had commenced, <br /> a heavy rainstorm hit the Kona area, causing silt runoff to flow from the <br /> development site into the ocean adjacent to Hokuli'a. Shortly thereafter, on <br /> 2303895c.docx 11 <br />