The partnership that owns the Registry Hotel near John Wayne Airport came away from a hearing in U.S. Bankruptcy Court with mixed results.
A judge ruled last week that the partners can continue to use the hotel's cash for normal operations. The hotel's biggest debtor, Homestead Savings & Loan Assn., wanted to sell the hotel to recover a $21-million debt and now wants at the least to force the hotel to use its cash more sparingly.
But the judge also ruled that the Dallas corporation that operates the hotel cannot collect its management fee while the hotel is in bankruptcy proceedings. That means no payments for the executive vice president and president of the Texas hotel management company, who--when they switch hats--are also the general partners in the Irvine hotel.
The partnership is looking for joint-venture partners to boost the 293-room hotel out of bankruptcy proceedings. The parties to the bankruptcy will next appear in court on Dec. 23.