Iron Horse Hotel files to reorganize finances under Chapter 11 bankruptcy protection. Its debts include a $2 million federal loan.
The operator of Milwaukee’s Iron Horse Lodge has submitted to reorganize its finances underneath Chapter 11 bankruptcy safety — listing debts that involve a $2 million federal financial loan.
Rider Resort LLC’s submitting comes as it faces a individual foreclosure match pending in opposition to the boutique 100-room lodge, 500 W. Florida St., in Milwaukee County Circuit Court docket.
The Chapter 11 filing would not necessarily mean the Iron Horse is shutting down, claimed Tim Dixon, Rider Lodge president.
“It can be undertaking properly,” he told the Journal Sentinel.
The filing makes it possible for the resort to reorganize its funds, which typically indicates reducing money owed owed to a variety of other corporations, below federal individual bankruptcy court supervision.
The first filing says Rider Resort has estimated liabilities ranging from $10 million to $50 million. It delivers the very same selection for the hotel’s approximated assets.
The most significant unsecured creditor is the U.S. Compact Small business Administration.
That is for a $2 million COVID-19 Economic Injuries Disaster Financial loan. That plan was created to assistance small corporations recover from the pandemic’s financial impacts.
The Iron Horse, like quite a few U.S. hotels, shut down for months in 2020 because of the pandemic. The hotel has considering that recovered as equally business enterprise and leisure travel will increase, Dixon mentioned.
The trouble, he said, is that Miami-based professional authentic estate financial institution Rialto Capital has refused to permit Rider Lodge to use the SBA loan proceeds.
Dixon stated that induced a foreclosures match submitted against Rider Resort in November by a Rialto affiliate, which solutions the hotel’s financial loan.
Rialto’s attorney failed to right away react to the Journal Sentinel’s ask for for comment.
That go well with now faces the probability of an automatic hold since of the Chapter 11 submitting, in accordance to on line court information.
That involves rendering moot Rialto’s ask for for a courtroom-appointed receiver operate the Iron Horse.
This is just not the Iron Horse’s initial higher-profile court dispute.
In 2019, Rider Lodge sued Chicago-based mostly Aparium Lodge Group LLC above statements that Aparium mismanaged the hotel — creating a myriad challenges.
Aparium denied these promises and said Dixon disregarded its warning to reinvest earnings and update the hotel’s notion amid expanding competitiveness.
The match was settled out of courtroom in 2021.
The Iron Horse, situated near the Harley-Davidson Museum and acknowledged for its biker-friendly environment, opened in 2008 inside of a historic former industrial creating that Dixon redeveloped.
Tom Daykin can be emailed at [email protected] and followed on Instagram, Twitter and Fb.
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This posting initially appeared on Milwaukee Journal Sentinel: Iron Horse Resort in data files to reorganize finances under Chapter 11
