NOT SO FAST
Sangamon County Circuit Court Judge John “Mo” Madonia is giving the parties a chance to figure things out for themselves in the Wyndham Hotel foreclosure case. With a loan servicing company playing a lead role, lenders foreclosed earlier this year even though the hotel’s owners were current with all payments on a $17.3 million mortgage that matures next year (“Lender forecloses on downtown hotel,” June 16, 2016). The plaintiff says that that the change in the hotel’s brand from Hilton to Wyndham in January, absent required permission from lenders, is sufficient cause to foreclose. Some $15 million is owing. The hotel’s franchise agreement with Hilton had been scheduled to terminate in November. With the plaintiff asking for a receiver to be appointed and attorneys for the hotel asking that the case be dismissed, Judge Madonia has declined the requests of both parties. “The court is not sufficiently satisfied that plaintiff will succeed on the merits of the complaint,” Madonia wrote in a ruling after a July hearing. “Additionally, the court finds defendant has demonstrated good cause to deny the appointment of a receiver based upon the current operation of the hotel under the defendant’s management combined with the potential negative impact that the appointment of a receiver could have on the operation of the hotel as a continued Wyndham franchise.” The next hearing in the case is set for October.