HPS disputes estimated value of AD1 hotels. HPS Investment Partners LLC, a lender owed $165 million in the bankruptcies of eight Florida hotels owned by AD1 Global Hotels LLC, said it believes the lodging operator’s valuations of the properties are “grossly overstated.”
AD1 has said the hotels are valued at between $210.5 million to $262 million. At a hearing Thursday in the U.S. Bankruptcy Court in Wilmington, Del., HPS lawyer Harvey Strickon said the sale of the hotels would yield less than what HPS is owed and that the only realistic course for AD1 is to sell the properties.
AD1 has said it is also seeking an equity investor, with other options including a possible debt refinancing. Mr. Strickon also said HPS disagrees with AD1’s characterization of events, including that HPS acted unreasonably before the chapter 11 filing. — Becky Yerak
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