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Marshall Investments Corp Seeking to Foreclose on the 600 room Executive Inn Rivermont,
Owensboro, Kentucky; Hotel Owes $10.74 million Plus Annual Interest
y James Mayse, Messenger-Inquirer, Owensboro, Ky.McClatchy-Tribune Business News

Apr. 20, 2007  - A Minnesota company has filed a motion in Daviess Circuit Court asking the court to foreclose on the Executive Inn Rivermont.

Marshall Investments Corp. filed a "third party motion" Wednesday. Marshall's actions came after Disaster Team Inc. filed a mechanics lien in December against the Executive Inn for $2.09 million, for work the company did at the hotel after a fire broke out last September. In January, Disaster Team filed suit against the hotel, saying the $2 million had not been paid.

Court documents filed Wednesday said Marshall Investments loaned Minnesota/Owensboro Executive Inn $11 million in May 2005. The documents say the hotel owners were expected to pay back the loan plus annual interest.

The hotel gave Marshall Investments a mortgage as part of the loan agreement. The mortgage gave Marshall a lien on the hotel property.

"(The) Executive Inn has failed to pay and continues to fail to pay, as they become due and payable, the installments of principal and interest on the loan agreement," the documents say. The hotel owes $10.74 million on the loan, plus annual interest.

John Stevenson, an Owensboro attorney representing Marshall Investments, said the company is asking to "intervene" in the Disaster Team suit. The company also wants the court to appoint a "receiver" -- someone to manage the hotel during foreclosure.

"We're going to offer a name (for a receiver) and hopefully the court will acquiesce to our request," Stevenson said Thursday.

A hearing on the requests will be held at 8 a.m. Tuesday in Daviess Circuit Court. Judge Tom Castlen will preside.

Stevenson would not comment on the particulars of the filing and said the documents speak for themselves.

In a press release, Executive Inn officials said the legal actions had not affected the hotel's business and that it was "open for business as usual."

The hotel press release said officials are already booking events for 2008 and 2009. "We would encourage community support and understanding as we continue to strive to promote Owensboro and Daviess County," the release said.

Marshall is requesting "that the mortgage of Marshall be enforced and, to that end, the real estate and other property encumbered by the mortgage be sold by the commissioner of this court, free and clear of all liens and encumbrances except the lien for current real estate taxes."

Court documents say several other parties -- including Disaster Team, Wilkerson Plastering and Acoustics, the city of Owensboro and Daviess County -- may have claims against the hotel. The Marshall filing says the other parties "should be required to assert any claim of right, title or interest each of them may have in the subject property, or forever be barred from so doing."

Patent Construction Systems has also intervened to make a claim, and three other companies have filed liens against the hotel since February, the court documents say.

Sean Land, another attorney representing Marshall Investments, said the motion would "bring everyone in that might have any kind of claim, so everything can be resolved at one time." Marshall's 2005 lien on the hotel, which was part of the loan agreement, is the earliest, which would put the company first in recovering funds from the hotel foreclosure, Land said.


Copyright (c) 2007, Messenger-Inquirer, Owensboro, Ky.

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