fb pixel

Log In


Reset Password

Hotel faces closure

Ashland's Mark Antony Hotel remains open for business, but faces liquidationif the owners can't find a way to satisfy $3.77 million in debt, much ofit back taxes. The hotel has until Nov. 21 to file a reorganization planthat will be approved by the courts.

Historic Mark Antony must liquidate if judge OKs trustee's plan

ASHLAND -- A U.S. Bankruptcy Court judge has been asked to consider aplan that would result in closure and sale of the Mark Antony Hotel.

Paul Garrick, an assistant trustee in the Office of the U.S. BankruptcyTrustee in Eugene, filed a motion Oct. 24 asking the judge to do one oftwo things:

Convert an earlier hotel reorganization proposal into a Chapter 7 liquidation,which would result in sale of the hotel to pay off debts.

Dismiss the reorganization proposal, leaving the Mark Antony owners topay their bills or file their own Chapter 7 liquidation proposal.

Liquidation would be the outcome if the judge approves either optionfor the downtown Ashland landmark.

Stand- Corp. Inc., owner of the hotel, went to the court in April toseek protection from creditors under a Chapter 11 reorganization.

The company, based in Reno, has listed the Mark Antony's assets as $1.8million and debts of $3.77 million, including a $1.6 million federal taxlien.

Garrick's filing says the issue is $20,000 in unpaid payroll tax thathas added up since the company filed for Chapter 11. Non-payment of suchtaxes is grounds for dismissal or conversion to a Chapter 7, the petitionstates.

Garrick said he doesn't know when the judge will consider his motion.It depends on how busy the court is, he said Monday.

Judge Albert Radcliffe has given the corporation until Nov. 21 to filea reorganization plan. If there's no filing until Dec. 12, it will automaticallybe dismissed, he ruled.

The court has taken no action, said Joe Burkhardt, president of Stand-Corp.

Burkhardt said he is still negotiating with several potential hotel buyers.He has said he hopes to sell it to someone who can afford to spend some$1.5 million to renovate and restore the old hotel.

The 1997 Jackson County tax rolls list the Mark Antony's value at slightlymore than $2.7 million.

Garrick noted that he is not the bankruptcy trustee in the action andthat no such trustee has yet been appointed.

Today'sBusiness Index,

Hotel faces closure