According to a report in the Honolulu Advertiser, Maui Land and Pineapple (MLP) the majority developer of the Residences at Kapalua is facing a cash shortage and looking to raise $25m. Part of this is due to very slow sales at its fractional offering. The report notes:

"Sales of condominiums and fractional ownership interests at the Residences at Kapalua haven't gone as well as hoped, with 19 of the 84 condominiums being sold and 62 of the 744 fractional interests being transacted."

MLP is a 51 percent owner of Bay Holdings, developer of The Residences at Kapalua Bay. The other members of Bay Holdings are Marriott International Inc., which owns a 34 percent interest, and Exclusive Resorts LLC, which owns the remaining 15 percent. AOL founder Steve Case, the largest shareholder in Maui Land, also controls destination clubdestination club Exclusive Resorts.

The project is branded as a Ritz-Carlton (a Marriott brand). A report in bizjournals notes "Cancellations and defaults on sales contracts for the luxury time share (fractional) and residence complex managed as a Ritz-Carlton property were much higher than anticipated."

MLP has taken a $209m charge on its BAy Holdings stake - writing the value down to zero.