Allerton Hotel Files Chapter 11 to Halt Foreclosure

The owner of the Allerton Hotel, ALT Hotel LLC, filed for chapter 11 bankruptcy petition on May 6, 2011. Filing the case has stopped an attempt by an investor to foreclose on a $69 million loan that is secured by the property. ALT Hotel LLC is an affiliate of Petra Capital Management.

Normal operations will continue at the Allerton throughout the bankruptcy case. The hotel is a historic property that is located on the corner of Michigan Ave. and Huron St. It is famous for its Tip Top Tap sign spelled out in neon, located at the top of the building. The Tip Top Tap had its heyday in the 1940s and 50s, closing in 1961. However, the sign stays lit to this day.

A statement by the Chicago hotel's bankruptcy lawyer said that "this filing is designed to protect against hostile predatory actions by one secured creditor that could have gravely adverse consequences for the hotel, its employees other creditors and vendors."

The question that remains is if the hotel is worth more than the loan. Stated in the petition are assets of $100 to $500 million, as well as $50 million to $100 million in debt, indicating that ALT/Petra thinks that is. The source of the valuation is unknown. Hotel occupancy levels and room rates are on the upswing, strengthening the property's cash flow and overall value.

If you are looking for bankruptcy information, contact a Chicago bankruptcy attorney. A bankruptcy attorney can assess your situation and advise you accordingly.

 

Allerton Hotel Files Chapter 11 to Halt Foreclosure

The owner of the Allerton Hotel, ALT Hotel LLC, filed for chapter 11 bankruptcy petition on May 6, 2011. Filing the case has stopped an attempt by an investor to foreclose on a $69 million loan. The hotel is the security for the loan. ALT Hotel LLC is an affiliate of Petra Capital Management.

Normal operations will continue at the Allerton throughout the bankruptcy case. The hotel is a historic property that is located on the corner of Michigan Ave. and Huron St. It is famous for its Tip Top Tap sign spelled out in neon, located at the top of the building. The Tip Top Tap had its heyday in the 1940s and 50s, closing in 1961. However, the sign stays lit to this day.

A statement by the Chicago hotel's bankruptcy lawyer said that "this filing is designed to protect against hostile predatory actions by one secured creditor that could have gravely adverse consequences for the hotel, its employees other creditors and vendors."

The question that remains is if the hotel is worth more than the loan. Stated in the petition are assets of $100 to $500 million, as well as $50 million to $100 million in debt, indicating that ALT/Petra thinks that is. The source of the valuation is unknown. Hotel occupancy levels and room rates are on the upswing, strengthening the property's cash flow and overall value.

If you are looking for bankruptcy information, contact a Chicago bankruptcy attorney. A bankruptcy attorney can assess your situation and advise you accordingly.

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