BILOXI, MS The president of Broadwater Hotel LLC has filed for Chapter 11 protection in federal bankruptcy court here as a result of defaulting on a lump-sum mortgage payment of more than $37 million due last July. The bankruptcy does not include the casino.
Broadwater Hotel is a subsidiary that includes the historic 360-room Broadwater Resort, the 180-room Broadwater Tower, and other resort amenities.
John Aylsworth, the president/CEO of President Casinos, said the bankruptcy is the direct result of a much-delayed plan to redevelop the resort into a complex of gambling halls and hotels.
Under Chapter 11, the company has 120 days to work out a payment plan to satisfy the bankruptcy court and its lien holder, Lehman Brothers brokerage house. Aylsworth said repaying the debt would not be a big problem, and losing the resort because of the debt was not a possibility. (4/23/01)
SOURCE: South Florida Sun-Sentinel