Jameson Inn Unit With Colony Debt Checks Into Ch. 11

Law360, New York (October 20, 2011, 5:39 PM EDT) -- Limited liability company JER/Jameson Mezz Borrower II LLC, which borrowed $40 million from Colony Capital LLC to finance budget hotel chain Jameson Inns Inc., filed for bankruptcy Tuesday in an attempt to head off Colony's foreclosure.

JER/Jameson's Chapter 11 filing in Delaware came after Santa Monica, Calif.-based Colony — one of five lenders who helped finance the buyout of the 100-hotel chain in 2006 with $335 million in loans — began foreclosure proceedings and also tried to block Gramercy Loan Services LLC, another creditor, from making...
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