Creditors Of Landmark Chicago Hotel End Loan Repayment Row

Law360, New York (October 31, 2012, 4:08 PM EDT) -- Petra Capital Management LLC and DiamondRock Hospitality Co. settled their loan repayment dispute in Illinois bankruptcy court Monday over the landmark Allerton Hotel in downtown Chicago.

The deal allows Petra affiliate ALT Hotel LLC to retain control of the 25-story, 443-room Allerton Hotel on Chicago's Magnificent Mile, according to bankruptcy court filings. Petra affiliates held a $10 million junior loan on the property.

In exchange, DiamondRock, which had held a $69 million senior loan prior to the bankruptcy, will receive a $71 million note. Petra will...
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