|[June 01, 2014]
Lehman Subsidiary Commences Voluntary Chapter 11 Proceeding for Canyon Ranch Living Miami Hotel; Seeks to Conduct Auction and Sale Under Section 363
NEW YORK --(Business Wire)--
FL 6801 Spirits LLC, a wholly owned subsidiary of Lehman Brothers (News - Alert)
Holdings Inc. ("Lehman"), and three of its wholly owned subsidiaries
(collectively "FL Spirits") have elected to file voluntary Chapter 11
petitions today in the United States Bankruptcy Court for the Southern
District of New York (the "Court") seeking bankruptcy protection for its
condominium hotel property in Miami Beach that is operated and managed
as a Canyon Ranch Living Hotel and Spa.
FL Spirits has also filed a motion to pursue a sale process under
Section 363 of the Bankruptcy Code. To this end, FL Spirits has entered
into an acquisition agreement with a "stalking horse" bidder, 360 Miami
Hotel & Spa LLC. Upon a successful closing of the transaction, the
project will be managed by the Enchantment Group, a premier operator of
award-winning resorts and destination spas, including Mii amo, a
destination spa at Enchantment Resort. Under the proposd agreement, the
purchaser will acquire the hotel lot (including the spa) and 13
condominium units for $12 million subject to higher and better offers.
The sale agreement contemplates a Court-supervised auction process,
which is designed to achieve the highest or best offer for FL Spirits'
assets. The agreement with the purchaser sets the floor, or minimum
acceptable bid, and is subject to Bankruptcy Court approval and certain
The current operator of the hotel, Canyon Ranch Living, is not a debtor,
and operations at the property are expected to continue without
interruption, during and after any court-approved sale and closing.
Canyon Ranch Living is not affiliated with Lehman and is managing the
hotel and condominium facilities pursuant to a management contract.
The court filing related to the petition and sale process can be found
at http://cases.primeclerk.com/flspirits (Docket
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