NASHVILLE, TENNESSEE The owner of the 97-key Hotel Indigo Nashville has defaulted on a US$17.5 million loan, leading 315 Union Street Holdings LLC to filed for Chapter 11 bankruptcy protection.
The filing last month in U.S. Bankruptcy Court in Nashville lists total combined debts of about US$25.6 million against assets of about US$14.1 million, including the US$13.1 million value of the real estate, The Tennessean reports.
Branch Banking & Trust of Atlanta, which holds the loan, filed a foreclosure lawsuit against 315 Union in October. The property owner is seeking a workout with BB&T to restructure the loan and stave off foreclosure.
“Our intention is to continue operating the hotel, and we have a plan we will be presenting to get it out of Chapter 11,” says Mark Lineberry, who controls the holding company. “The hotel is doing well and is making money. Business has been really good, and the hotel has been well-received. We just have to work this out.”
Lineberry also owns majority interest in Hotel Indigo Nashville-West End across town, but that property is not affected by the bankruptcy filing.