Another Chicago based hotel has filed for bankruptcy protection. Yet despite the unfortunate but all too common news, the owners of the property stand committed to remain open and conduct normal business during the tedious process.
ALT Hotel LLC, the owners of the once profitable hotel, claims to have approximately 100 to 200 creditors. The debt of the venture is staggering which is expected to have reached approximately $50 million to $100 million. The debt equals or exceeds the new worth of the parent company which has assets ranging from $100 million to $500 million. In these times, many Chicago bankruptcy attorneys are used to seeing debt exceed assets.
Though once certain the hotel would avoid bankruptcy, the owners now argue that the bold actions of single creditor has threatened the hotel’s future, causing no the owners no choice but to file. The list of creditors is extensive and includes Wells Fargo, Diamond Rock Hospitality, and Diamond Rock Allerton Owner LLC. The hotel owners expect these debtors to file lawsuits.
A spokesperson for the hotel claims the hotel will emerge stronger then ever.
“We are very proud of the significant improvements in hotel operations and performance in the few months since we assumed ownership. We have met all our obligations, and enjoy strong positive cash flows.”
The list of secured creditors was not cited in the bankruptcy filing.