WICHITA, KS— Wichita businessman Ken Peters has declared Chapter 11 bankruptcy, according to a recent report in The Wichita Eagle. According to the bankruptcy filing, Peters, still owns a one-half interest in four of the hotels and a one-third interest in two others. He showed about $4.3 million in liabilities and about $3.5 million in assets. Regency Savings Bank FSB of suburban Chicago held the mortgage on one of the motels, the Scotsman Inn at 465 S. Webb Road, owned by Ken Peters, his brother Robert Peters and two others. Regency foreclosed on the property after the owners stopped making payments on the mortgage in October, said Regencys lawyer, Roger Hughey. “Their contention was that their business fell off because of the Sept. 11 attacks,” Hughey said. “Our contention was that they let it get old and didnt invest to keep it fresh.” Peters declined to comment. Peters declared bankruptcy Aug. 13, one day before the motel was to be sold at auction, blocking the sale. Hughey said Peters and the other owners have been making payments on their other hotels. Robert and Ken Peters built launched the small chain of budget motels in the 1980s under the Scotsman and Mark 8 labels in Wichita, Hutchinson and San Antonio. SOURCE: The Wichita Eagle
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