$19M Claim Put To Bed In River Road Hotel Bankruptcy

The final substantial claims dispute in River Road Hotel Partners LLC's Chapter 11 plan was settled Wednesday, as a $19 million initial claim was dramatically slashed down to $52,500, clearing the way for the liquidating hotel developer to start paying its creditors. The agreement with EREF Mezzanine LLC was filed in the U.S. Bankruptcy Court for the Northern District of Illinois, and comes nearly 18 months after the Chapter 11 plan was approved by the court in late 2011. “We’re satisfied with the settlement and reasonably pleased to be in a position to conclude the River Road bankruptcy saga,” said Stephen T. Bobo of Reed Smith LLP, attorney for liquidating trustee Michael Kayman. The trustee had objected to EREF Mezzanine’s claim in February 2012, arguing that it was not actually against the debtor, but originated from a loan supposedly given to two other mezzanine funds that had partially underwritten River Road Hotel’s operations, according to court records. EREF Mezzanine was seeking $14.4 million, plus $5 million in accrued interest, from River Road Hotel Mezz LLC and River Road Restaurant Mezz LLC, both of which also petitioned for Chapter 11 protection in August 2009 when River Road Hotel and two affiliates filed for bankruptcy, according to court records. read more at: http://www.law360.com/articles/435878/-19m-claim-put-to-bed-in-river-road-hotel-bankruptcy