DekaBank Tries To Nix W Hotel Ch. 11 Case

Law360, New York (June 1, 2010, 5:50 PM EDT) -- Seeking a foreclosure auction for a $64.5 million loan on the W Hotel in Manhattan's Union Square, DekaBank Deutsche Girozentrale has filed suit to prevent the private equity fund that now owns the luxury hotel from placing it under Chapter 11 bankruptcy protection.

The adversary complaint, filed Saturday in the U.S. Bankruptcy Court for the District of Delaware, claims the debtor, LEM Capital LLC unit Hotels Union Square Mezz 1 LLC, lacks authority to move the W Hotel into bankruptcy, jeopardizing the $64.5 million loan DekaBank...
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