Two GF hotels going through bankruptcy
Two Grand Forks hotels are going through bankruptcy proceedings, a principal owner confirmed today. Settle Inn & Suites, 1211 N. 47th St., and the GuestHouse Inn, 710 First Ave. N., are seeking Chapter 11 protection as their finances are reor...
Two Grand Forks hotels are going through bankruptcy proceedings, a principal owner confirmed today.
Settle Inn & Suites, 1211 N. 47th St., and the GuestHouse Inn, 710 First Ave. N., are seeking Chapter 11 protection as their finances are reorganized.
Dave Graf, managing member of the hotels, said the bankruptcy case was filed Oct. 1 for the Settle Inn, the GuestHouse Inn and three other hotels in Nebraska and Wisconsin.
He said he refinanced the hotels' mortgages five years ago with mortgage-backed security loans, but the terms have become difficult to keep up with after the recession and the accompanying downturn that's hit the hotel industry.
Graf said the hotels were no longer able to keep up with the lender's required payments earlier this year during the winter months when hotels traditionally see their business slow down.
Going through bankruptcy proceedings is the "new plan" to restructure finances and get the hotels back on track, he said.
"The way to do that is to take the Chapter 11 where we can negotiate new terms with the lender," he said.
Graf said the company has remained current on all of its local bills and that "no one's going to get hurt in the process."
"It will not affect any vendors or guests or staff people," he said. "We can operate as normal."
And Graf said there are no layoffs or changes of management planned for the two Grand Forks hotels or the three other units owned by the company. He said it will likely take at least a few more months before the bankruptcy proceedings will be done.
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