Sunday, July 12, 2009

Only a Miracle Will Stop America's Shutdown

Barring a miracle worthy of a Frank Capra script, the historic Boulder Dam Hotel won't open for guests, diners and history buffs Sunday.

The 20-room hotel and museum in downtown Boulder City is three months behind on its mortgage and last-minute appeals for money from the local government failed.

That leaves operators no choice but to shut down at midnight, which means the 76-year-old hotel, restaurant and museum will become a dark spot in the middle of Boulder City's historic district.

It also will leave 22 mostly part-time workers without jobs and two on-site caretakers looking for a new place to live.

Consolidated Resorts Inc. and 13 affiliated companies filed for Chapter 7 bankruptcy this week, seeking to liquidate the time-share companies.

Consolidated has between $100 million to $500 million in liabilities and $1 million to $10 million in assets, according to a bankruptcy document signed by Consolidated President Arthur Spector. It's not believed that those numbers can be added to the range of numbers reported for the other companies.

When the companies previously disclosed that they planned to file for bankruptcy protection, they said they were planning to file under Chapter 11, which gives them an opportunity to reorganize their debts and emerge from bankruptcy as an ongoing businesses.

Chapter 7 provides for liquidation of assets so that cash may be distributed among creditors.

It appears we are still at the early stages of Zombulation to Commercial Real Estate....stay tuned for more carnage from the Zombatic Fallout.

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