Hyatt Evades Auction Hammer by Filing for Chapter 11

ORLANDO-Using a time-tested, 11th-hour strategy, the Maryland owner of the 20-year-old, 919-room Orlando Hyatt hotel Wednesday filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code, temporarily canceling the May 1 public auction of the Kissimmeee, FL-based property.

That strategy means the sale is delayed until the bankruptcy court judge allows it to go forward, a process that could take up to two years, bankruptcy lawyers familiar with comparable cases tell GlobeST.com.

The hotel’s owner, Orlando Hyatt Hotel Associates LP of Rockville, MD, is contesting the $29.5 million amount owed to LaSalle Bank of Chicago.