George Zaczac, owner of CF Hospitality, owed $70 million on the Orlando hotel and a sister property in Miami when he filed for protection from creditors in US Bankruptcy Court last year. Both properties were operating at a loss, and courtroom testimony in Orlando painted a bleak picture of the Sheraton's prospects.
With an additional penalty of about $26 million assessed because of a contractual default, the company's total debt rose to more than $90 million, says Edwin Reisz, who became president of CF Hospitality after it filed Chapter 11 in May 2008. He adds that the hotel was able to pay its bills until this summer's slow season.
A bankruptcy judge considered converting the case to Chapter 7 last month, but a court-appointed trustee asked that the hotel keep operating until it could be sold. Click here to read more from the Orlando Sentinel.
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