1250 Oceanside Partners and two affiliates, owners of more than 1,800 acres of land on the Island of Hawaii, filed for bankruptcy to restructure more than $500 million in debt, Bloomberg News reported yesterday. Oceanside listed assets of more than $10 million in chapter 11 documents filed on Wednesday. Affiliates Front Nine LLC and Pacific Star Co. also sought court protection. Developer Lyle Anderson controlled the three companies until 2008, when Bank of Scotland LLC declared a default on about $1 billion in debt and exercised its right to replace the directors, including Anderson. The debt was secured by projects in New Mexico, Arizona and Hawaii. Sun Kona Finance I LLC acquired the portion secured by Hawaiian assets in December. The total balance due on that debt was about $625.2 million, according to court papers.
