Naniloa disputes continue

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By TOM CALLIS

By TOM CALLIS

Tribune-Herald staff writer

The buyer of the Naniloa Volcanoes Resort said he has finished transferring money for the $5.2 million purchase to escrow.

“Today, it will be there,” Ed Bushor of Tower Development said Tuesday.

On Monday, David Farmer, Naniloa’s bankruptcy trustee, said the buyer missed a deadline late last week for providing the purchase amount.

On Tuesday, Bushor disputed those statements, including the deadline, and said he was in the process of closing the transaction the day before.

“The attorneys were all being told that it was being done,” he said.

Farmer confirmed Tuesday that the money had been provided.

Meanwhile, a hearing has been set for Monday in U.S. Bankruptcy Court to address other disputes between Bushor and Farmer.

Bushor said Farmer has not provided him with documents necessary to complete the close of the sale, including estimates on income and expenses, among others.

“The agreement says when conditions are done by the seller the closings are to be done,” Bushor said. “The conditions aren’t done yet.”

He has requested closure of sale, which Farmer said was set for Tuesday, to be extended to Dec. 18.

Bushor also said he wasn’t allowed access to the property until Dec. 4, which he said has inhibited efforts to take over operations.

He has also requested that $2 million of the purchase price be withheld until issues, including claims about missing property, be resolved.

Missing property includes kitchen equipment (all of which was apparently removed), detergent, linens, towels, lamps and artwork, according to Bushor.

Additionally, the state Department of Land and Natural Resources, which owns the land, filed an appeal of the sale Monday.

Monday was the deadline to file an appeal, and Russell Tsuji, DLNR land administrator, said the department wanted to make sure it didn’t waive that right.

Tsuji said DLNR wants to be assured that Bushor can meet the lease obligations.

The Board of Land and Natural Resources will discuss the sale Friday, and may decide to cancel the appeal, he said.

“What they really want to hear is plans for the hotel,” Tsuji said.

Bushor said he plans to invest $20 million, including renovations.

He plans to employ between 115 and 200 people, and complete work on the hotel by 2015.

“We want to upgrade the entire complex,” Bushor said. “We plan on upgrading the club area and facilities to bring it back to the way it should be,” he said.

Email Tom Callis at tcallis@hawaiitribune-herald.com.