Hotel owner Le Centre on Fourth files bankruptcy, looks to sell assets

By Caroline Salls

Pittsburgh, Nov. 13 – Le Centre on Fourth LLC filed Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the Southern District of Florida amid plans to sell substantially all of its assets.

Le Centre on Fourth said in its bid procedures motion that it wants to get at least $72 million for its assets, plus the assumption of liabilities. The company has set a March 30, 2018 sale-closing deadline.

Under the proposed bid procedures, the company said it may enter into a stalking horse agreement following the submission of bids. If it does secure a stalking horse bid, Le Centre on Fourth said it would pay that bidder a 2% break-up fee and reimburse up to $150,000 of its sale-related expenses if it is not ultimately the high bidder.

Le Centre on Fourth is proposing a bid deadline of 4 p.m. ET on March 9 and a March 13 auction date. Bids at auction must be made in minimum increments of $250,000.

The bankruptcy petition said U.S. Bank NA declared a default on the company’s construction loan, and there are no new readily available sources of credit to replace that loan.

In addition, Le Centre on Fourth said Al. J. Schneider Co. is exercising control over company funds, “causing ongoing and continuing damage to the company.”

In connection with the bankruptcy filing, the company is seeking court approval to use the cash collateral of its pre-bankruptcy secured parties to fund its operations throughout its bankruptcy case.

According to court documents, Le Centre on Fourth has $50 million to $100 million in both assets and debt.

No unsecured creditors were listed with claims of $1 million or more.

The company is represented by Jordi Guso as legal counsel.

Plantation, Fla.-based Le Centre on Fourth is the holding company for the Embassy Suites hotel in Louisville, Ky. The Chapter 11 case number is 17-23632.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.