Hearing set Wednesday for possible reopening of Daufuskie golf course, beach club

A golf course and beach club at the Daufuskie Island Resort and Breathe Spa could reopen as early as next week, if a federal court approves the plans.

Trustee Robert C. Onorato, a former president of Palmetto Dunes Resort on Hilton Head Island, has managed the resort for five weeks. He worked to improve its financial condition since former owners Bill and Gayle Dixon of San Francisco filed for bankruptcy in January.

The Dixons have $88.2 million in liabilities and a list of more than 400 creditors, according to the bankruptcy filing.

Tobin Spirer, Onorato's spokesman, said the U.S. Bankruptcy Court District of South Carolina controls the property and distribution of its assets, so reopening any amenities must be approved by the court.

Onorato is scheduled to appear before the court Wednesday in Charleston.

The resort was built by the Melrose Co. in the 1980s. Since then, it has changed hands several times, most recently when Dixons bought it in 2002.

The resort includes an inn, the Bloody Point and Melrose golf courses, a restaurant and an equestrian center.

Only the equestrian center is operating, on a skeleton staff, Spirer said.

Reopening the Melrose Golf Course and the Melrose Beach Club would help the resortmake some money, which could help offset the bankruptcy, Spirer said.

The ultimate goal is to sell the property to pay back creditors, Spirer said. While some potential buyers have expressed interest, no sale is imminent, according to Spirer.

Russ Brown, chairman and CEO of RBC Enterprises, which develops and sells real estate at the resort, said three or four potential buyers are looking at the entire property. About 10 others have inquired about buying individual assets, such as the inn or golf course, Brown said.

"The mission is to make sure everyone gets paid back," Brown said. "Whatever the property sells for, it's got to sell at the highest value. So there's a lot of work that needs to be done. We don't want to put it on the market before that's been achieved."