One of Boca Raton’s hotels will soon be on the auction block due to bankruptcy. The Guest Suites at 701 N.W. 53rd St. is owned by Shubh Hotels Boca LLC.
The corporation filed for Chapter 11 in February in an attempt to stop a foreclosure auction. The property is subject to a $36.2 million judgment in favor of United Central Bank out of Texas. The managing member of the corporation failed to show for his arraignment on charges of federal fraud. He allegedly misused the proceeds of loans against the hotel and another in Pittsburgh and is now a fugitive from justice.
The opening bid on the hotel property was submitted by Consolidated Credit Counseling Services. According to the property trustee, of its 183 rooms, less than half are in usable condition.
The U.S. Bankruptcy Judge has given his approval for the May 15 auction to take place in Boca Raton. Interested parties must qualify for bidding by the end of April and are required to submit a million dollar deposit. The auction’s results must meet judicial approval.
United Central Bank has a right to use the $36.2 million as an auction credit bid. The bank must also provide funds for the debtor’s unsecured claims and administrative fees of $105,877.
If you find that your business or personal finances are increasingly shaky, with mounting debt and creditors calling, you may feel that you have run out of options.
But all is not lost. Arrange a consult with a bankruptcy law attorney to discover if restructuring your total debt is an option. You may wish to begin anew with a clean financial slate.
Source: South Florida Business Journal, “Boca Raton hotel in bankruptcy auction, Dvorkin submits bid” Brian Bandell, Apr. 23, 2014