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Date of Issue: March 17, 2005

Creditors approve Tidemark bankruptcy reorganization

Unsecured creditors of the bankrupt Tidemark condominium project in Holmes Beach voted 15-1 last week to approve a new reorganization and exit financing agreement Tidemark had presented to the federal bankruptcy court in Tampa, paving the way for Judge Alex Paskay to take the embattled company out of bankruptcy.

No final order approving the agreement between Tidemark and Reliance Property Group of Conn. has been issued, according to the bankruptcy court, although Paskay has given preliminary approval.

Tidemark managing partner Nick Easterling said he expects the order to be issued "any day now.

"Basically, we're done. We've been approved and no more hearings are scheduled. We're just waiting for the final order," he said.

RPG has pledged up to $5.6 million to pay off creditors and inject enough financing to construct the project. Easterling said the closing date with RPG is Nov. 30. Sales of the units will begin after the closing, he said, but units will sell for considerably higher than the $500,000 price suggested in 2001, as land values have more than doubled on the Island the past three years.

The controversial 40-unit Tidemark hotel/marina/condominium was given site-plan approval by the Holmes Beach City Commission in August 2001, but had difficulties with financing. The company filed for bankruptcy in January 2004.