IBJNews

Creditor could take ownership of downtown Comfort Suites

Back to TopCommentsE-mailPrintBookmark and Share

The Comfort Suites City Centre on the southwestern fringe of downtown Indianapolis that filed bankruptcy earlier this year could be handed back to its largest creditor.

The owner of the Comfort Suites City Centre, Warsaw Hotel Partners LLC, is an affiliate of Dora Brothers Hospitality Corp. in Fishers. Dora Brothers operates 18 hotels in Indiana under various flags, including 10 in the Indianapolis area.

Warsaw filed for 11 bankruptcy petition in February. Court papers list assets of $6.8 million and liabilities of $12.1 million.

New York-based German American Capital Corp., which alone is owed $12 million, could own the property by the end of the year, if a U.S. Bankruptcy Court judge approves the plan.

In a Tuesday court filing, German American is proposing to take ownership from Warsaw Hotel Partners of the Comfort Suites by submitting a “credit bid” of $7.5 million. A credit bid is a legal maneuver in which a bank uses its debt in a property to acquire it.

German American likely is confident that it can resell the property for more than the bid in an attempt to at least get some return on its investment.

Objections to the proposal are due to the bankruptcy court by Oct. 19, and a hearing has been set for Oct. 24.

“Time is clearly of the essence, since the closing of the sale promptly is of critical importance,” a lawyer for Warsaw Hotel Partners wrote in court documents.

German American provided Warsaw Hotel Partners a $12.6 million loan in February 2007 to acquire land and construct the Comfort Suites. The loan came due in November 2010, at which time Warsaw Hotel Partners still owed $11.2 million in principal, according to court documents.

The Comfort Suites continues to operate, as is customary for hotels seeking to reorganize their debts through Chapter 11.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT