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Sheraton Anaheim Hotel, Files for Bankruptcy Protection; Bankruptcy Over a Dispute, Not Results |
By Sandi Cain
February 2003 Pacific Islandia California Inc., owner of the 489-room Sheraton Anaheim Hotel, has filed for bankruptcy protection. Anaheim-based Pacific Islandia said the filing stems from a dispute
with the hotel�s lender, Littleton, Colo.-based MONY Realty Capital Inc.,
part of New York's MONY Group Inc.
Sheraton legal counsel John Graham, a partner in the Century City law firm of Jeffer, Mangels, Butler & Marmaro LLP, said he believed MONY Realty planned to support a request to continue hotel operations, pay vendors and workers and use all revenue toward hotel operations during the bankruptcy. A hearing on the request was set for late last week. �We expect the court to agree,� Graham said. A MONY official said "it wouldn't be appropriate to make a public comment" for this story. Steven Spector, another member of the Jeffer, Mangels legal team, said the Sheraton franchise at the hotel is �not in jeopardy.� Sheraton parent Starwood Hotels & Resorts Worldwide Inc. of White Plains, N.Y., is �extremely supportive� of the bankruptcy move, he said. A Starwood representative couldn�t be reached for comment. �The Chapter 11 (bankruptcy) was not filed due to vendor issues,� Spector said. �Vendors will be paid and no interruption of services is expected.� The hotel has performed well in recent months and �exceeded projections� for January and February, Spector said. Talks between MONY and Pacific Islandia are expected this week. �We�re cautiously optimistic that it will lead to a positive resolution,� Spector said. Graham said the hotel is planning a renovation and the owners recently acquired the adjacent Spaghetti Station restaurant that also is set for a remake. The Sheraton Anaheim, built in 1969, is one of the oldest full-service hotels in the Disneyland area and ranked No. 10 on the most recent Business Journal list of the county�s largest hotels. It has 20,000 square feet of meeting space, putting it among the largest 15 meetings facilities in OC. Anaheim-based Pacific Islandia Guam Inc., parent company of Pacific Islandia California, acquired the hotel for $27.3 million in 1990 in a foreclosure sale by Sanwa Bank, according to records. The hotel sits on land owned by an individual trust.
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Sandi Cain Laguna Beach CA 949-497-2680 [email protected] |