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Judge Says Marriott Has $20.6MM Claim Against Honolulu Hotel

Wednesday, 13 June 2012 22:26
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Bankruptcy Judge Robert J. Faris in Hawaii amended his ruling estimating, for purposes of voting and feasibility, Claim No. 79 filed by Marriott Hotel Services, Inc. and Marriott International, Inc.  The judge said Marriott has a $20,665,787 against the estate.  Late last month, the judge pegged Marriott's claim at $18,473,805.  The Marriott claim includes $15,812,868 for the present value of lost profits and $4,852,919 as reimbursement claim.
Marriott and the Debtor have filed competing plans in the case.  The bankruptcy judge was scheduled to hold confirmation trial beginning June 1.  If necessary, the confirmation trial would continue June 4 to 8, and resume again July 9 to 13.
The hotel's plan would have the Davidson Family Trust from Incline Village, Nevada, retain ownership.
Marriott is proposing a competing reorganization plan to wrest control from the owners who are proposing to pay creditors in full under their plan.
M Waikiki owns the Modern Honolulu, a world-class, luxury hotel property located close to Waikiki Beach in Hawaii.  The hotel is being managed by Modern Management Services LLC, an affiliate of Aqua Hotels and Resorts.
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 roughly 75 indirect investors, which was formed to acquire the Hotel.
The Company filed for Chapter 11 protection (Bankr. D. Hawaii Case No. 11-02371) on Aug. 31, 2011.  Judge Robert J. Faris presides over the case.  Patrick J. Neligan, Esq., and James P. Muenker, Esq., at Neligan Foley LLP, in Dallas, Tex.; Simon Klevansky, Esq., at Klevansky Piper, LLP, in Honolulu, Hawaii, are the attorneys to the Debtor.  Bickel & Brewer serves as special litigation counsel.  The Debtor tapped XRoads Solutions Group, LLC, and Xroads Case Management Services, LLC, as its financial and restructuring advisor.  The Debtor disclosed $216,116,142 in assets and $135,085,843 in liabilities as of the Chapter 11 filing.
Modern Management is represented by Christopher J. Muzzi, Esq., at Moseley Biehl Tsugawa Lau & Muzzi LLC.
Marriott Hotel Services, which used to provide management services, is represented by Susan Tius, Esq., at Rush Moore LLP
LLP, and Carren B. Shulman, Esq., at Sheppard Mullin Richter & Hampton LLP.
James A. Wagner, Esq., and Chuck C. Choi, Esq., at Wagner Choi & Verbrugge, in Honolulu, serve as bankruptcy counsel for the
Creditors' Committee.
Bankruptcy Judge Robert J. Faris in Hawaii amended his ruling estimating, for purposes of voting and feasibility, Claim No. 79 filed by Marriott Hotel Services, Inc. and Marriott International, Inc.  The judge said Marriott has a $20,665,787 against the estate.

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