Urban Hotels Files for Chapter 11 Protection
LOS ANGELES, CA, December 6, 2005. Faced with a potential foreclosure, Urban Hotels Inc. has filed for Chapter 11 protection, according to published reports.
The operator of the 12-story, 260-room LAX Plaza Hotel owes junior secured creditor AN Capital $3.5 million, according to debtor counsel M. Jonathan Hayes. AN foreclosed on its second deed of trust.
First Credit Bank has a secured claim of roughly $10 million, Hayes said, and equipment lenders are owed another $1.5 million or so, according to the reports.
Hayes said Urban Hotels had no certain plans, but that if it cannot refinance its debt, the company will sell its assets. Although the attorney was unsure whether any debtor-in-possession financing was on the table, he believes Urban Hotels will likely try to obtain it.
The Culver City, CA-based company filed for bankruptcy protection on Nov. 29 in the U.S. Bankruptcy Court for the Central District of California in Los Angeles.
Urban Hotels listed $23 million in assets and $20 million in liabilities.
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