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Lodge on the Desert back in bankruptcy court | Tucson Business News

But the repayment plan fell through and the hotel was unable to refinance its debt with a private investment firm that acquired the hotel’s loans from Wells Fargo, Michael McGrath said. bankruptcy attorney for Lodge Partners.

“The property hasn’t rebounded as quickly as expected,” said McGrath, who represented the company in the previous bankruptcy case.

Lodge Partners has hired John Rutherford, a management and business executive specializing in corporate turnarounds, to lead the restructuring effort.

A new group of investors, Lodge in Tucson LLC, is expected to provide new financing and operating funds during the bankruptcy, subject to court approval, McGrath said.

The new funds will be used to improve the hotel’s guest experience, make additional improvements to the hotel and restaurant, and strengthen the hotel’s sales and marketing efforts, the company said.

Hotel staff will be maintained and all existing hotel, meeting and restaurant reservations will be honored, the company said. The hotel’s third-party management company, Coastal Hotels Group, will continue to manage the property.

The hotel has not yet filed a schedule of assets and liabilities, but said it expects to have funds available to repay unsecured creditors, including vendors.