The City of Peoria, IL filed with the U.S. Bankruptcy Court an objection to the motion to dismiss the case of GEM Hospitality affiliated Debtor Pere Marquette Hotel.
The objection asserts, “The City further states that it believes that it is in the best interests of the City and its residents that the Bankruptcy Case of Debtor Pere Marquette Hotel, LLC not be dismissed. If the case were dismissed, on information and belief, INDURE would immediately reschedule the sale of the hotel properties in the case of INDURE Build-to-Core Fund, LLC f/k/a IBEW-NECA Diversified Underwritten Real Estate Fund, LLC vs. PERE MARQUETTE HOTEL, LLC, et al., Peoria County, IL Case No. 17 CH 100, filed on February 28, 2017, (the ‘Foreclosure Case’).”
In addition, “Without any marketing or promotion of the sale in the Foreclosure Case, the only realistic outcome of the sale would be that INDURE would snap up the hotel properties with a credit bid of its First Mortgage, leaving the City with no recovery whatsoever on its Second Mortgage on the hotel properties. In contrast, it is the hope and expectation of the City that in the Bankruptcy Case, with appropriate marketing and promotion of a Section 363 sale of the hotel properties, the purchase price for the hotel properties could exceed INDURE’s lien, resulting in the City receiving some recovery on its Second Mortgage.”
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