Five Hotels Owned by Shamrock-Hostmark Fund File for Chapter 11
Five hotels owned by investment fund Shamrock-Hostmark Hotel Fund LP filed for chapter 11 protection on Wednesday after they were unable to pay or negotiate an extension on loans that matured May 31, Dow Jones Daily Bankruptcy Review reported today. Each hotel has its own credit facility ranging from $13 million to $37 million from General Electric Capital Corp., which matured first in July 2009 and were extended to May 2012. The loans are cross collateralized and were used for capital improvements at the hotels when they were acquired in 2006 and 2007. The $100 million Shamrock-Hostmark Hotel Fund is a fund under the umbrella of Shamrock Holdings Inc., the investment fund founded by Roy E. Disney, Walt Disney's nephew, in 1978. It's directly under Shamrock Capital Investors Inc., which also manages Shamrock Activist Value Fund LP.