Tuesday, September 7, 2010

Lehman Estate Files to Foreclose on Ritz Kapalua .

The estate of bankrupt securities firm Lehman Brothers Holdings Inc. has filed court papers to foreclose on Hawaii's Ritz-Carlton Kapalua resort, continuing the carnage in that state's hotel sector.

The luxury resort, which has two golf courses, has been owned since 2006 by a venture of Gencom Group and Goldman Sachs Group Inc.'s Whitehall Street Global Real Estate LP. The venture has been in default on its $255 million mortgage for more than a year partly because of its ill-fated strategy to convert 107 units into condominiums.

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