Radisson is a large hotel chain that may be familiar to our readers in New Jersey and Pennsylvania. Recently one of the members of an ownership group that invested in one of the chain’s properties filed for a Chapter 7 bankruptcy. This filing occurred after the hotel began to suffer losses that led to financial difficulties for its investors.
The hotel was built using funds that included a $17.65 million loan. The ownership group that took out the financing appears to have numbered five individuals. At least two of those people have now filed for a Chapter 7 bankruptcy to help recover from the losses that the hotel caused.
One of those who filed for the bankruptcy protections offered by a Chapter 7 filing asserted to the court that he had $106.4 million in liabilities. This high number was offset by only $3.3 million in assets. That filing occurred in 2010, several months before the most recent investment group member sought the protections of a bankruptcy filing.
The situation of the investors in this case may be familiar to many readers in New Jersey. Like the men who found that they had lost so much that it caused them to be unable to repay their debts, many who attempted to invest in properties in our state lost a great deal of money during the recent recession. When a person finds that they are in a similar situation, they may do well to consider seeking the protections and benefits offered by a decision to file for Chapter 7 bankruptcy.
Source: Menomonee Falls Patch, “Another Radisson Hotel Co-owner Files for Bankruptcy,” Carl Engelking, Nov. 30, 2012