Boston W Hotel staves off foreclosure

BOSTON A U.S. federal bankruptcy judge has denied an attempt by lender Prudential Insurance Co. to foreclose on W Boston Hotel & Residences.

Judge Joan Feeney ruled that developer SW Boston Hotel Venture LLC is “moving in a meaningful direction” and can continue marketing and selling the luxury condominium units attached to the property. Condo units at the property are being marketed for between US$900,000 and US$3 million.

The ruling permits SW Boston to submit a plan for reorganization and to attempt to repay its debtors, reports. Prudential had loaned the developer US$192 million in January 2008. SW Boston also owes the city of Boston about US$6 million.

SW Boston filed for Chapter 11 bankruptcy protection last year.