A group of partners belonging to Bishop’s Lodge have filed for Chapter 11 bankruptcy protection with the US bankruptcy court in Delaware.
The decision of the majority owners of the property came against the wishes of its managing member, Richard Holland.
“We didn’t need to file for bankruptcy,” Holland said in an interview on Wednesday.
Holland and its partners own the property on the north side of Santa Fe, and Auberge Resorts Collection operates the resort.
Monday’s filing aims to restructure the $ 78 million debt incurred to create the ultra-luxury 100-room resort that opened in July with rooms typically priced above $ 1,100 per night. The debtor is officially listed as BL Santa Fe LLC, the company Holland formed when he acquired Bishop’s Lodge in 2014 to transform the property into a luxury resort.
Holland said the partners had a controlling stake in BL Santa Fe and disputed Holland’s claim that he would remain a managing member.
Holland did not name his partners.
“This whole mess is unfortunate and will be resolved soon,” Holland said.
Holland used similar words in May when a lawsuit was filed against BL Santa Fe LLC in the lower court asking for the foreclosure of Bishop’s Lodge property for non-payment of a $ 43 million loan from Fortress. Credit Co. LLC. Ten days later, the court issued a “notice of apology.”
Chapter 11 bankruptcy “typically offers a reorganization plan to keep (the) business alive and pay creditors over time,” according to the US Courts website.
The bankruptcy is not expected to affect Bishop’s Lodge operations, officials said.
Hotel general manager John Volponi said Bishop’s Lodge will “most definitely” remain open.
“Nothing changes for us,” he said. “We continue to operate as we always have. We are very lucky that it does not affect us.
The Dutch entity, HRV Santa Fe LLC, is the disputed managing member of BL Santa Fe LLC.
“This file was separate from me,” Holland said. “It is very complicated and difficult to describe and difficult to understand.”
Holland said his preference for access to additional capital differed from that of his partners, who insisted on the Chapter 11 bankruptcy.
The bankruptcy document lists more than 200 creditors, each with assets and liabilities estimated at between $ 50 million and $ 100 million.
The bankruptcy filing lists the top 20 creditors with unsecured debts owed at $ 1.55 million. This does not include claims from secured creditors.