• Two South Loop Condo Projects on the Brink of Foreclosure

    The battered South Loop residential real estate market is taking another hit as Amalgamated Bank sues to foreclose on a condo project.

    Amalgamated Bank, a union-owned lender, is moving to foreclose on the $50-million construction loan it issued for the 180-unit Terazzio project at 1935 S. Wabash Avenue. The New York-based bank filed a foreclosure suit in May, following up with a separate complaint in June against ventures of Sedgwick Properties Development Corp. and Sedgwick’s Marty Paris. The lawsuit says Paris personally guaranteed the loan.

    The bank is seeking $45.7 million, which includes $1.54 million in late charges and accrued interest on the loan. The suit says the Sedgwick venture first defaulted on the loan in July 2010 when it stopped making monthly debt payments. The Terrazio is being converted into apartments.

    A separate foreclosure lawsuit has been filed by an Amalgamated venture against Sedgwick’s Marquee condo tower, completed in 2008 at 1454 S. Michigan Ave. The suit says the project’s $60 million construction loan, initiated in 2005, wasn’t fully paid off when it came due on December 2010. The bank’s suit seeks $4.17 million and also alleges that Paris personally guaranteed the debt.

    No one, not even large corporations, are immune from issues such as foreclosure. All it takes is one hiccup in the income to start down the slope to a bank filing a lawsuit. Legal remedies are available to individuals and corporations alike to salvage what is left of their finances. The key is to utilize them before it’s too late.

    Benjamin Brand Services – Chicago foreclosure attorney

  • Hooters Casino Hotel in Las Vegas Files for Bankruptcy

    The Hooters Casino Hotel filed for Chapter 11 bankruptcy protection in an attempt to reorganize its debt. The filing is for the casino/hotel in Las Vegas and does not affect any of the over 430 Hooters Restaurants across the nation.

    Hotel owner 155 East Tropicana LLC released a statement to reassure Hooters patrons. “This action in no way affects the operation of more than 430 Hooters Restaurants in 44 states and 27 countries which are owned or franchised by Atlanta based Hooters of America LLC” it said on August 1, 2011.

    The corporation formed in 2004 to purchase property that would become the world’s first Hooters-themed hotel and casino. The financial struggles came as a result of the recession that has kept visitors from traveling to Las Vegas over the past few years and motivated rival hotels to slash room rates, according to the bankruptcy filing.

    115 East Tropicana “has been faced with declining hotel and casino revenues based on increased price and promotional competition, additional properties opening on the Las Vegas Strip, reduced consumer spending, a tightened credit market, and an overall weakened economy,” the company’s chief financial officer said.

    The quote from the CFO of 115 East Tropicana is a laundry list of woes, ones that illustrate how tough it is to operate a business successfully in an adverse environment. However, instead of trying to ride out the poor economy, they turned to bankruptcy as a way to save the business from complete financial ruin. Anyone who is in a similar situation on a personal level needs to take this reality to heart and file bankruptcy before it’s too late to salvage anything.

    Benjamin Brand Services – Chicago bankruptcy attorney