Macdonald | Fernandez LLP


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

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.

The Company: 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.