Bishop’s Lodge equity owner slams Chapter 11 plan and proposed sale

By Sarah Lizee

Olympia, Wash., Oct. 12 – The Chapter 11 plan of BL Santa Fe, LLC, which owns the Bishop’s Lodge resort in Santa Fe, N.M., drew an objection on Friday from an equity owner and developer of the resort, Richard F. Holland, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Holland said he and his affiliates were not included in the negotiations that led to the plan, which permits the mezzanine lender to acquire the property without any marketing or competition.

“The debtors filed these cases with a [restructuring support agreement] predicated on a debtor-in-possession financing facility that required the debtors to consummate this sham sale within a matter of weeks,” Holland said in his objection.

He added that the debtors have received an alternative proposal from Andrew Blank, but the debtors’ engagement with Blank has been “superficial.”

Holland said Blank had pursued the resort for months prior to the bankruptcy filing, and following the petition date, put forward “an objectively better plan” with committed equity and debt financing, including a 0% interest unsecured debtor-in-possession loan.

“The debtors ignored Mr. Blank’s overtures,” Holland said.

The Santa Fe, N.M.-based hotel owner filed Chapter 11 bankruptcy on Aug. 30 under case number 21-11190.

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