Breakers Mezz I, LLC, an affiliate of the Fairmont Breakers hotel redevelopment in Long Beach, CA, filed for Chapter 11. The petition was filed after a creditor announced plans to auction its equity stake in the project. The filing will now give the entity time to restructure the organization.
California-Based Breakers Mezz I, LLC Seeks Chapter 11 Protection
According to PacerMonitor, Breakers Mezz I, LLC, filed for Chapter 11 bankruptcy on October 2. It is affiliated with the Fairmont Breakers hotel redevelopment in Long Beach, California. Recently, a creditor announced plans to auction off its equity stake.
The company filed for bankruptcy to buy time to reorganize. The filing also stays the auction and allows Breakers Mezz I time to find a path to preserve ownership. The petition suggests the filing was expedited to beat the auction deadline.
The company is asking the court for additional time to submit the required documents. After submitting the paperwork, the company plans to file a reorganization plan. If approved, Breakers Mezz I will begin implementing its restructuring plan.
Creditor’s Plan to Auction Ownership
X-Caliber Funding, a creditor of Breakers Mezz I, had planned to auction off its equity interest, according to Bondoro. However, with the company filing for Chapter 11 bankruptcy, the plan will be put on hold for the time being. With the bankruptcy filing, the auction is now stalled while Breakers Mezz I pursues reorganization.
Case Filing and Court Proceedings
Court records confirm the company paid the required filing fees. However, it hasn’t yet submitted all required documents, so it’s asked the court to extend the deadline. A proof of service was filed to confirm that required parties were notified.
Chapter 11 lets the company work on a reorganization plan while maintaining operations. Meanwhile, the filing halts the auction and gives Breakers Mezz I time to defend its ownership stake.
