Canyon Ranch Hotel in Miami Beach could get new management after bankruptcy sale
The spa facilities in the Canyon Ranch and Spa in Miami Beach is part of a Chapter 11 filing by Lehman Brothers.
The Canyon Ranch Hotel & Spa in Miami Beach could be placed under new management as an Enchantment Resort if Lehman Brothers Holdings[5] succeeds in selling the property in U.S. Bankruptcy Court.
New York-based Lehman Brothers seized the 580-unit condo-hotel in 2009 from WSG Development in a deed in lieu of foreclosure while its extensive renovation was still ongoing. All but 13 units were sold but the proceeds of the sale were “substantially less” than the outstanding balance of the property’s mortgage, according to a bankruptcy court declaration by Lehman Brothers VP Anthony Barsanti[6].
RELATED CONTENT: Lehman Brothers seizes Canyon Ranch Miami Beach[7]
The hotel has operated at a loss each year of its operation, he said.
On June 1, Lehman Brothers affiliates FL 6801 Spirits LLC, FL 6801 Collins North LLC, FL 6801 Collins South LLC and FL 6801 Collins Central LLC filed for Chapter 11 reorganization in the Southern District of New York. Albert Togut represents the debtors, which claimed assets of $12 million and liabilities of $17.3 million. The largest claims came from the hotel condo associations and hotel manager Canyon Ranch.
The property including in the bankruptcy is the 13 unsold units plus the hotel’s common area, including the spa, the pools, the retail spaces and the gym.
The debtor immediately filed a motion to sell the property for $12 million to 360 Miami Hotel and Spa LLC, an affiliate of Montreal-based 360 Vox LLC. That company would like its Enchantment Resorts brand to take over management of the hotel, Barsanti said. Such a sale would be done through a bankruptcy auction so other bidders would have an opportunity to submit a higher offer.
Brian Bandell covers banking, finance, health care and education. Get the latest banking industry news here.[8]
References
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- ^ Lehman Brothers Holdings (www.bizjournals.com)
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