The high bid in a bankruptcy auction yesterday for Renault Winery Resort and Golf came from the property’s mortgagee, OceanFirst Bank, which made a credit bid on the still-open resort, the Press of Atlantic City (N.J.) reported today. The Toms River, N.J.-based bank obtained a $7.7 million mortgage foreclosure judgment against Renault last summer. The property was on the verge of going to a sheriff’s sale before the 150-year-old vineyard filed for chapter 11 bankruptcy protection in November. A hearing for a federal judge to approve a sale is scheduled for Thursday in Camden, N.J. Read more.
For further analysis of issues surrounding credit bidding, be sure to pick up a copy of ABI’s Credit Bidding in Bankruptcy Sales: A Guide for Lenders, Creditors, and Distressed-Debt Investors.