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Judge could halt sale of Cavalier Hotel (The Virginian-Pilot)

By Gabriella Souza, The Virginian-PilotMcClatchy-Tribune Regional News

May 11--The sale of the historic Cavalier Hotel could come to a halt next week.

That's if a Fairfax County judge on Friday approves a motion filed by attorneys of the longtime owners of the hotel, The Disthene Group Inc. They seek to halt the sale until the Supreme Court of Virginia decides whether to stop an order to dissolve the company and sell its assets, which include vast land and kyanite mines as well as the iconic Oceanfront hotel.

"There is no emergency that requires the assets, which have been operated successfully for decades, to be sold now," attorney Michael Lacy wrote in the motion.

A court-appointed receiver took control over Disthene's assets last year. Disthene, which was the world's largest refiner of the mineral kyanite, had been controlled by the Dixon family until a family feud and a lawsuit. The Dixons, who had owned the Cavalier for more than 50 years, have been in litigation over profits.

Two weeks ago, the Supreme Court of Virginia granted a petition for rehearing

brought by The Disthene Group's attorneys, who are seeking to keep the company intact. That hearing had not been scheduled as of Friday, according to the Supreme Court clerk's office.

CBRE Groups Inc. started accepting bids April 25 for parcels containing the landmark 86-year-old hotel and its 1970s-era sister hotel across Atlantic Avenue.

Doug Henkel, a CBRE executive vice president and lead broker in its Norfolk office, said then that CBRE and the receiver were "moving forward with the sale." He did not respond to a call for comment Friday.

Gabriella Souza, 757-222-5117, [email protected]

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(c)2013 The Virginian-Pilot (Norfolk, Va.)

Visit The Virginian-Pilot (Norfolk, Va.) at pilotonline.com

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