Trustee selected in Colony case

Management for the famed Colony Beach & Tennis Resort on Longboat Key will remain in place while a trustee oversees its day-to-day operations.

William Maloney, a St. Petersburg-based chief financial officer restructuring expert, was appointed June 4 to be the U.S. trustee in the Colony's Chapter 11 bankruptcy case.

Maloney, a partner with Atlanta-based Tatum Partners, has more than 25 years of domestic and international experience in Fortune 50, middle-market and small entrepreneurial businesses.

Colony President and General Manager Katie Moulton said she was very happy with the trustee selection. “We feel Mr. Maloney will quickly have a grasp of the financial operations and conditions here,” Moulton said.

Even though Maloney has allowed Moulton to continue in her role while he reviews the hotel's operations, he has the final say in all resort decisions moving forward.

Moulton said Maloney has shown “eagerness to bring all interested parties together to have some reasonable and productive dialogue and assist in coming to some collaborative solution.”

Meantime, Moulton said the resort is continuing to market the hotel for the summer and has strong occupancy numbers for July.

Maloney's first report on the state of affairs at The Colony is not expected to be presented to Tampa-based U.S. Bankruptcy Judge K. Rodney May until mid-July at the earliest.

Maloney will eventually tell May whether he believes the resort can be restructured through Chapter 11 or if the case should be converted to a Chapter 7 liquidation. Maloney declined comment on his appointment.