221 Sansome Street San Francisco, CA 94104 Telephone: (415) 362-0449 Facsimile: (415) 394-5544
914 Thirteenth Street Modesto, CA 95354 Telephone: (209)549-7949 Facsimile: (209) 236-0172
Wednesday, August 12, 2015
Success Story: $20 Million Hotel and All Jobs Saved From Collapse
In the summary below, we tell the story of how we recently saved a $20 million hotel from collapse, keeping the doors open without interruption and saving all jobs.
A hotel in Riverside, California.
The Problem: The hotel defaulted on certain terms of an approximately $20
million loan agreement with a lender. The lender subsequently initiated
state court litigation to foreclose.
The Solution: We filed a chapter 11 bankruptcy case for the hotel, halting
the state court litigation and allowing the hotel to continue to operate
without interruption. Thereafter, we handled issues touching upon municipal bond financing, assumption of the franchise agreement, disputed easements and purchase options. Recently, we obtained bankruptcy court confirmation of the hotel's chapter 11 plan of reorganization, which modifies the terms of the loan agreement and completely resolves all issues.
The Impact: Through a confirmed chapter 11 plan, we saved the hotel from
foreclosure. The hotel’s bankruptcy case is now
closed and the hotel is operating profitably.