• 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.

  • Giordano’s pizza chain owners ordered out of Chicago headquarters

    A federal bankruptcy court recently ordered the takeover of the famous Chicago Giordano’s pizza chain.   However, the company’s president and his family member refused to leave the Chicago headquarters.  The company filed bankruptcy in February.

    According to court filings, the family would not let on the premise the appointed trustee handling the Chapter 11 takeover and even threatened to call the sheriff’s office.  The trustee appealed to the court for an order to force the family out permanently.  The turn of events is not uncommon says one Chicago bankruptcy lawyer .

    According to reports, the owners of the pizzeria, Giordano’s Enterprises Inc., had missed important court deadlines in the case, had not paid court fees, and had even fired its attorney.

    The company has remained quiet about the cause of bankruptcy and how it planned to emerge, if at all, from its financial troubles.  The trustee also claims to have very little knowledge about the financial workings of the company.

    According to the Chicago bankruptcy attorney , the process will likely become extremely tense if the company and its operators continue acting hostile towards the trustee.  The last thing the company wants is to have the court continuously issuing orders directly aimed at the operators.