TUCSON, ARIZONA Transwest Resort Properties Inc., owner of The Westin La Paloma Resort & Spa, Arizona, and The Westin Hilton Head, South Carolina, has filed for Chapter 11 bankruptcy protection.
Tucson-based Transwest made the filing last week with the goal of freeing cash to modernize the resorts and to enhance the company’s long-term viability. Transwest acquired the two properties in 2007 for a combined US$310 million, but the company is delinquent on the estimated US$240.5 loan remaining on the mortgage.
An attorney for Transwest tells Arizona Daily Star that the likelihood of impending foreclosure by the lender hastened the bankruptcy filing.
Operations at the resorts are expected to continue normally during the reorganization process.