Lender fighting InterContinental Chicago Hotel sale
River Road Hotel Partners LLC, the owner of the InterContinental Chicago O'Hare hotel near Chicago's largest airport, is scheduled for an Aug. 23 hearing on a motion for approval of bidding procedures related to a sale opposed by the secured lender.
Before a deadline in June, River Road filed a motion to set up auction procedures where the first bid of $42 million would come from an affiliate of Och-Ziff Real Estate Acquisitions LP. The sale would be part of a Chapter 11 plan where more than $2 million of cash on hand would be used to pay expenses of the Chapter 11 case.
Longview Ultra Construction Loan Investment Fund, the secured construction lender owed $161 million, is opposing the sale process and believes the plan can't be confirmed.
Longview filed a motion last week asking the bankruptcy judge to allow it to file a competing plan. The motion is also on the calendar for Aug. 23.
River Road filed under Chapter 11 in August 2009 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, listed $155 million in debt. The Radisson property listed debt of $120 million.
The case is In re River Road Hotel Partners LLC, 09-30029, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).