Magic Island Petitions for Reorganization

Magic Island Inc., a private Newport Beach nightclub devoted to the magical arts, has filed in U.S. Bankruptcy Court in Santa Ana for protection from its creditors while it reorganizes.

In the Chapter 11 petition, the 4-year-old club listed debts of more than $4.1 million, mostly in unpaid and disputed loans, and assets of about $2.4 million.

The club, in Lido Marina Village, also listed a disputed debt of $100,000 owed to the Hotel and Restaurant Employees and Bartenders Union for alleged unfair labor practices.

Neither club President Michael A. Callie nor bankruptcy attorney David P. Delancy could be reached for comment on the Tuesday filing.

Magic Island at one time boasted such talents as magician David Copperfield and drew crowds of social, political and entertainment personalities.

The club remains open to members, said a hostess Wednesday night. But to continue to remain open and to rise out of bankruptcy the club must present a plan to reorganize its structure and debts that its creditors will accept.