Lauderdale Hotel Sold at Bankruptcy Auction

01/20/2014

Chapter 11 Bankruptcy Fort LauderdaleThe  Lauderdale Beachside Hotel sold at bankruptcy auction this past December to foreign real estate investors. The owner of the hotel filed for Chapter 11 bankruptcy protection in June 2013, after Comerica Bank threatened to foreclose in 2011. This is the fourth hotel the Ukrainian investors have purchased in the area of Lauderdale-By-The-Sea, a beach community of about 6,000 residents.

The 147-room hotel sold for $17 million. The buyers are real estate developers from the Ukraine who own the hotel next door. They are planning a renovation of the property, which the Sun Sentinel called “rundown” and noted a mold problem. It was built in 1975

Filing for Chapter 11 bankruptcy stops actions like foreclosure. During the process, a company, in this case Ocean 4660 LLC, can make the usual sales and purchases that are a part of its business, but not larger actions like purchasing another company or selling off whole parts. To do that, the debtor must get court approval.

In this case, the court approved the sale of the property to pay the mortgage owed on it, and the hotel brought in enough and more thanks to a rebounding of real estate value in Miami Beach and the surrounding areas. So even though this was a bankruptcy auction, it wasn’t the bankruptcy trustee auctioning off the property, as would happen in a Chapter 7 liquidation. It was the bankruptcy court approving an auction of the property to help settle debt.

Please keep in mind that every case is different, so if you are thinking of filing bankruptcy, and would like to schedule a no-cost consultation, please contact our office by completing the form on this website, calling us at 954-920-5355, or emailing us at info@lslawfirm.net.

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Attorney Advertising. © Copyright 2017 Leiderman Shelomith. All rights reserved. Please keep in mind that every case is different, so if you are thinking of filing bankruptcy,
and would like to schedule a no-cost consultation, please contact our office by completing the form on this website,
calling us at 954-920-5355, or e-mailing us at info@lslawfirm.net.