Celebration Pointe Bankruptcy Restructuring Plan Proposes Property Transfer to Debtors
Celebration Pointe Has Had Problems for Many Years
Celebration Pointe Bankruptcy Restructuring Plan Proposes Property Transfer to Debtors
A dramatic restructuring plan for Gainesville’s Celebration Pointe development was unveiled Wednesday in federal bankruptcy court, proposing to transfer the mixed-use complex’s assets to approximately 30 debtors to satisfy $200 million in outstanding debt.
The proposed reorganization aims to keep the embattled development operational while resolving its financial crisis through a complex asset distribution scheme. Under the plan, Celebration Pointe Holdings would transfer ownership of the property to creditors, who would then work to maintain the facility and find new buyers for individual businesses.
Attorney Scott Shuker, representing three major debtors in the case, expressed optimism about the plan’s potential success, contingent upon the cooperation of principal investor Patricia Shively. Shively, who faces potential financial liability exceeding $100 million, filed a lawsuit in June 2025 against developer Svein Dyrkolbotn and wealth management firm Koss Olinger, alleging she was misled into investing and cosigning loans for the project.
“This plan represents the best path forward to ensure the development continues operating while providing essential services like maintenance, landscaping, and security,” Shuker told reporters following the court proceedings.
The restructuring proposal includes provisions for establishing a property owners association to manage common areas and maintain the development’s infrastructure. Debtors are actively seeking prospective buyers for individual properties within the complex, with negotiations ongoing for deals potentially ranging from $10-40 million to resolve Shively’s ownership stake and debt obligations.
Court documents indicate that if an agreement cannot be reached with Shively by the March 10 hearing date, the case may be dismissed, potentially resulting in portions of the development “going dark” as operations cease.
The Celebration Pointe project, once envisioned as a premier destination featuring retail, dining, and entertainment venues, has struggled financially since its inception. The bankruptcy filing represents the culmination of years of financial difficulties and legal disputes among investors and developers.
Shuker emphasized the urgency of reaching a resolution, noting that continued operations depend on securing new ownership and maintaining essential services throughout the transition period. The attorney confirmed that Shively would receive final financial proposals seven days before the March hearing, giving her adequate time to evaluate the terms.
Representatives for Patricia Shively have not yet responded to requests for comment regarding her position on the proposed restructuring plan.
The case continues to unfold in federal bankruptcy court, with the March 10 hearing scheduled to determine whether the asset transfer plan will proceed or alternative solutions must be explored