The Company owns the Ritz-Carlton San Juan Hotel, Casino & Spa near San Juan, Puerto Rico. The Hotel is operated by Ritz-Carlton Hotel Company LLC and its affiliate, Ritz-Carlton Hotel Company of Puerto Rico, Inc. (�Ritz-Carlton�).

Prior to the bankruptcy filing, the Company sued Ritz-Carlton in state and federal courts in Delaware complaining that Ritz-Carlton has committed numerous acts of fraud and mismanagement and has refused the Company full access to its books and records. That litigation was pending at the time of the filing.

Jeffrey Levine, president of the Company�s general partner, stated, �The bankruptcy filing is a direct result of our disputes with Ritz-Carlton and will greatly facilitate access to our property and records, as well as enable us and our creditors to scrutinize the conduct of Ritz-Carlton.�

At the company�s request, Judge Ray authorized the Company to temporarily use its cash to operate and entered a Temporary Restraining Order against Ritz-Carlton directing that it grant the Company access to its books and records and requiring Ritz-Carlton to comply with the terms of its management agreement.

Mr. Levine further stated, �The hotel will continue to operate during the bankruptcy and provide the first class service and facilities that our guests rightfully expect.�

The Company is represented in its bankruptcy by Scott L. Baena of the law firm of Bilzin Sumberg Dunn Baena Price & Axelrod LLP in Miami, Florida.