SAN FRANCISCO— According to a report by the American City Business Journals>/EM>, Divco West Properties, a San Jose-based commercial property owner, is seeking to buy the Clift hotel in San Francisco for $71 million. Under a plan submitted to U.S. Bankruptcy Court last month, Divco would buy the hotel from from Ian Schragers Morgans Hotel Group, which is operating under Chapter 11 bankruptcy protection, and then lease it back to Morgans for 99 years. According to the report, Divco doesnt expect a decision from the court until September. While the transaction is designed to pay off Shragers creditors, it is not clear whether it will be contested by distressed debt firm Black Diamond Capital Management, which in November bought $62 million of the hotels debt and was rumored to be angling for control of the property. SOURCE: American City Business Journals>/EM>
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