Resort foreclosure sale is off — for now
June 7th, 2007 - Category: ResortThe owner of the financially distressed Lajitas Resort in far West Texas got a little breathing room Tuesday when a foreclosure sale in Brewster County was canceled.
“My client has agreed to delay the sale for month. It will give the Lajitas folks some more time to get their new loan or additional money together,” said Robert Ladd, a Houston lawyer who represents Prime Asset Funding of Greenwich, Conn.
A year ago, the finance company lent Lajitas $12.5 million for improvements, but according to Ladd, the resort next to Big Bend National Park did not hold up its end of the bargain, triggering the foreclosure proceedings.
“They agreed to maintain certain levels of financial performance,” Ladd said, declining to be more specific.
Stephen R. Smith of Austin, a telecom magnate who bought the remote resort for $4.25 million at a public auction in 2000, could not be reached for comment.
Since acquiring Lajitas, then a modest middle-class hotel, Smith has pumped at least $100 million of his personal wealth into creating the self-described “Ultimate Hideout,” which has yet to turn a profit.
Resort manager Daniel Hostettler, who several weeks ago said new financing was imminent, likewise did not respond to phone calls or e-mails seeking comment.
Ladd said the parties got together Monday and signed an agreement to suspend the sale, which had been set for the next day. With interest and costs, the resort owes a little more than $12.5 million, but no deadline has been given to pay up, he said.
“There is no timetable, but don’t be surprised if you see another posting of foreclosure. You have to do it 21 days in advance. That just means we’ll be ready to foreclose on July 3 if they don’t pay the obligations,” he said.
information from : www.mysanantonio.com
