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Bloomberg.com <br /> 1250 Oceanside Partners Files for Bankruptcy Protection <br /> By Dawn McCarty- Mar 7, 2013 1:36 PM GMT-1000 <br /> 1250 Oceanside Partners and two affiliates, owners of more than 1,800 acres of land on the Island <br /> of Hawaii, filed for bankruptcy to restructure more than$500 million in debt. <br /> Oceanside listed assets of more than$10 million in Chapter 11 documents filed yesterday in U.S. <br /> Bankruptcy Court in Honolulu. Affiliates Front Nine LLC and Pacific Star Co. also sought court <br /> protection. <br /> The restructuring will"allow the debtors' development projects to proceed, and will permit their <br /> respective creditors to receive payment in excess of the liquidation value of their claims," Craig <br /> Pickett, the companies' sole executive officer, said in court papers. <br /> Assets acquired for the development of Hokuli'a, a luxury real estate project, include a 3 1/2-mile <br /> tract along the Kona coast, Pickett said. Oceanside's creditors include the County of Hawaii, with a <br /> claim of$20 million, and Ackerman Ranch Inc., with a claim of$13.4 million, according to court <br /> papers. <br /> Developer Lyle Anderson controlled the three companies until 2008, when Bank of Scotland LLC <br /> declared a default on about $1 billion in debt and exercised its right to replace the directors, including <br /> Anderson. <br /> The debt was secured by projects in New Mexico, Arizona and Hawaii. Sun Kona Finance I LLC <br /> acquired the portion secured by Hawaiian assets in December. The total balance due on that debt was <br /> about$625.2 million, according to court papers. <br /> The case is In re 1250 Oceanside Partners, 13-00353, U.S. Bankruptcy Court, District of Hawaii <br /> (Honolulu). <br /> To contact the reporter on this story: Dawn McCarty in Wilmington at dmccarty@bloomberg.net <br /> To contact the editor responsible for this story: John Pickering at jpickering @bloomberg.net <br />