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Judge postpones ruling on Daufuskie Island Resort

The judge overseeing the bankruptcy of Daufuskie Island Resort & Breathe Spa delayed his ruling about the future of the property after a two-hour hearing Monday in Columbia, according to a spokesman for the bankruptcy trustee.

Officials overseeing the bankruptcy are considering dividing the resort's assets into groups and allowing secured creditors to claim many of them. The officialst hen would sell the rest separately. An auction last week produced no bidders for the property as a whole.

Unless a buyer for the whole emerges soon, the credit-bidding process is likely to begin once Judge John E. Waites rules on some technical issues, trustee spokesman Tobin Spirer said. One issue is whether previous resort owner Bill Dixon, who declared bankruptcy in 2009, would be allowed to bid on properties as a creditor.

The resort includes two golf courses, an inn, tennis courts, several restaurants, an equestrian center and entitlements to develop more than 500 commercial and residential parcels. It was once a major employer on the sparsely developed island, which is off the southern tip of Hilton Head Island and accessible only by boat.

-- Josh McCann

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