Business

Bankrupt O'Hare hotel gets more time to reorganize

Posted April 22, 2010 11:00 pm

River Road Hotel Partners LLC, owner of the InterContinental Chicago O'Hare hotel near Chicago's largest airport, received an extension of the exclusive right to propose a reorganization plan until June 9.

The judge previously said that River Road couldn't have another extension request without giving secured lenders a "written, specific and detailed restructuring proposal" by April 9.

Although the proposal was delivered on time, the lender said it was "wholly unacceptable." River Road filed under Chapter 11 in August in Chicago along with affiliate RadLAX Gateway Hotel LLC, the owner of the Radisson hotel at Los Angeles International Airport.

Both are ultimately controlled by Harp Group. The O'Hare property, opened in September, has $155 million in debt while the Radisson owes $120 million. The lender for both hotels is San Diego National Bank.

The case is In re River Road Hotel Partners LLC, 09-30029, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).

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