Hemstreet's Shilo Inns Filing Chapter 11

PORTLAND-On behalf of six of its 46 hotels, Shilo Management Corp. has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy code, according to court documents obtained by GlobeSt.com. Filings for another 21 Shilo Inns are expected in coming days as hotelier Mark Hemstreet attempts to reorganize following a six-month lull in the industry that began Sept. 11.

The two hotels that filed Wednesday are located on Airport Way in Portland and in Richland, Wash. Of the four that filed last week, one is in Salt Lake City and others are located in the California cities of Pomona, Oakhurst and Delano. Combined, the six hotels already filed estimate debts of between $160 million and $300 million and assets of between $15 million and $100 million. The total number of creditors is estimated at between 220 and 500.

The signatory on each of the filings is John Kneeland, who runs the day-to-day operations of the chain on behalf of Shilo Management Corp. The firm’s lawyer is Ball Janik attorney Brad Summers, who according to court records was paid $150,000 to handle each of the two cases filed this week and $50,000 for each of the cases filed last week. Neither Hemstreet nor Summers returned phone calls seeking comment on which of the other hotels would be filing.