HONOLULU, Aug. 31, 2011 -- M Waikiki LLC, a hotel investment company, today announced that is has filed for Chapter 11 bankruptcy protection. The filing allows the company to reorganize in an effort to protect its investment in The MODERN Honolulu, a 353-room luxury hotel.
The filing follows a court decision this morning granting a temporary restraining order to allow Marriott International Inc. ("Marriott") to resume its operation of the property. The Chapter 11 filing now allows M Waikiki ("Owner") to reaffirm the termination of the management agreement with Marriott and continue to employ new management at the property. M Waikiki LLC had installed new management this weekend at The MODERN Honolulu, formerly known as the Waikiki Edition.
"We respectfully disagree with today's court decision and remain confident that the Owner acted within its rights terminating its contract with Marriott," said William A. Brewer III, partner at Bickel & Brewer and lead counsel for Owner. "In any event, the Owner has filed for bankruptcy protection, which will permit it to continue the operation of the hotel under its present management with Modern Management Services."
Modern Management Services was installed as the manager at the property on August 28, 2011. The hotel was renamed, guests were advised, and hundreds of hotel staff members were offered employment. New management remains in place.
Today's ruling and reorganization announcement do not affect Owner's claims against Marriott, pursuant to which Owner seeks tens of millions of dollars in damages.
"In our view, filing for bankruptcy protection is the only prudent option for protecting our investment in this asset," said Damian McKinney, principal of M Waikiki LLC. "We look forward to reorganizing as a new corporate entity, continuing the employment of a new management company, and making this a leading lifestyle hotel for guests and employees."
About M Waikiki LLC:
M. Waikiki is a Hawaii limited liability company with its principal place of business located in San Diego, California. It is a special purpose entity, having approximately 75 indirect investors, which was formed to acquire the Hotel.
About Bickel & Brewer:
Founded in 1984, Bickel & Brewer has earned a reputation as one of the most successful law firms in the United States practicing exclusively in the field of complex commercial litigation and dispute resolution. With offices in New York and Dallas, Bickel & Brewer represents a wide spectrum of industry leaders – from entrepreneurs to Fortune 500 corporations – facing the most challenging of legal issues. Visit Bickel & Brewer at www.bickelbrewer.com.