Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, September 15, 1993 TAG: 9309150011
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The Roanoke company said it had failed to reach agreement with its lenders to restructure or purchase its mortgage.
That means Krisch American probably has "a month or two or less" to find an investor-partner to help save the property, said president Samuel J. Krisch II.
He declined to say how much money Krisch American Inns is seeking. If the effort to find a new partner fails, he said, the lender "will require us to convey the property."
A 49 percent interest in Sugar Bay Plantation is the company's only asset.
Krisch American Inns, a publicly held company, has conveyed all of its interest in other motel properties to Westinghouse Credit Corp. and other mortgage holders.
A separate company, Krisch Hotels Inc., manages Sugar Bay and several privately held hotel properties, including several Holiday Inns in the Roanoke Valley, under management contracts.
The mortgage on Sugar Bay is held by a investor group controlled by Lehman Brothers of New York. That group bought the mortgage, along with other unrelated loans, from Westinghouse Credit Corp.
Krisch said his company had arranged a layer of first mortgage financing on preliminary terms, but does not have enough financing arranged to reach an agreement with its lender.
If the interest in Sugar Bay is conveyed to the lender, Krisch said, the company will have no more assets.
Regardless of the outcome of its interest in Sugar Bay, Krisch said, the company is interested in other acquisitions. If it can be arranged, new properties would be acquired through financing, he said.
by CNB