Dauphin Island condo project in bankruptcy

    The developer of the 144-unit Holiday Isle has filed for bankruptcy
because 50 buyers backed out of purchases in the seven-story
Dauphin Island condominium project.

    Holiday Isle LLC, a subsidiary of Mobile-based The Mitchell
Company Inc., filed its bankruptcy petition on Oct. 23. It cited
assets between $10 million and $50 million compared with
liabilities between $1 million and $10 million, according to court
records.

    Mitchell attorney Paul Wesch said Holiday Isle filed for Chapter
11 bankruptcy protection to avoid foreclosure by RBC Bank and
Sovereign Bank.

    Construction began in 2005. Company officials still hope to sell
the unsold units while reorganizing the project’s finances.