Holiday Inn Naperville faces foreclosure

Investors - including many from the suburbs - that backed the Holiday Inn Select in Naperville are being sued for about $20 million as the hotel faces foreclosure.

A group of investor firms owe about $18.9 million from a loan, plus interest and late fees, to Anglo Irish Bank Corp. of Ireland. Their last payment was in February 2009 and the loan matured in April 2009, according to DuPage County Circuit Court documents.

The hotel remains in operation.

Investment firms named as defendants include AMC Delancey HMA Naperville Partners LP, AMC Delancy HMA Naperville Associates LP, Harp MidAm Diehl Road LLC and HMA Diehl Road LLC. Behind those firms are individuals from Wheaton, Oak Brook, Gurnee, Bolingbrook and Chicago, according to data obtained from the Illinois secretary of state's office.

Individual defendants named in the suit are David Bossy of Hinsdale, co-founder of Mid-America Development Partners of Oak Brook; Peter Dumon of Hinsdale, a principal at The Harp Group of Oakbrook Terrace; and Michael Firsel of Vernon Hills, a co-founder of Mid-America no longer with the firm.

Calls on Wednesday to Bossy, Dumon and Firsel were not immediately returned. The law firm representing the companies as well as lawyers for Ango Irish Bank, which filed the suit, could not be reached for comment.

The Holiday Inn Select in Naperville joins a growing list of hotels around the suburbs that have faced financial woes. The Wyndham O'Hare in Rosemont closed on Jan. 1 when no buyer could be found. The Sheraton Chicago Northwest in Arlington Heights closed in late December and the Wyndham Drake Hotel in Oak Brook closed in October.

The 426-room Naperville hotel has been the site for numerous community events and chamber of commerce meetings.

Last February, Tailwind Services of Chicago was granted receivership of the Naperville hotel and secured a $100,000 bond, according to court documents.

Tailwind retained Portfolio Naperville LLC to continue to manage the property.

The franchise agreement for the property to be a Holiday Inn Select ended March 31, but Tailwind officials were negotiating to retain the brand as they believe the property value will be "damaged" if it does not retain the brand, court records said.

Tailwind reported to the court that during March, its first month under receivership, the property generated $629,000 in revenue and had expenses of $684,000, the documents said.