A Lehman Brothers Holdings subsidiary and three other companies filed for Chapter 11 bankruptcy protection for their Canyon Ranch Living Hotel and Spa in Miami Beach.
The voluntary filings were made in U.S. Bankruptcy Court for the Southern District of New York on Sunday. A sale of the hotel property and 13 condos could be imminent, however. Spirits, the Lehman subsidiary, already filed a motion to pursue the sale and announced in a written statement that it has a willing buyer.
A stalking horse bidder, 360 Miami Hotel & Spa, entered into an agreement with Spirits to buy the property and condos for $12 million, according to GlobeSt. If no other bidders emerge and the sale closes, Enchantment Group would take over management of Canyon Ranch.
The Canyon owners almost sold the property and units earlier this year, but litigation with condo owners scuttled the transaction. Canyon Ranch Living, which manages the hotel for the owners, says operations would not be impacted by the bankruptcy proceedings. [GlobeSt] — Eric Kalis