The hotel owners owe Can Partners $26.9 million. The hotel at 5715 W. Major Blvd., one-quarter of a mile from tourist-themed International Drive and 15 minutes from Walt Disney World, has been closed since December. U.S. Bankruptcy Court Judge Karen S. Jennemann paved the way last week for the foreclosure suit by refusing to allow the hotel owners to file for Chapter 11 protection from creditors under the U.S. Bankruptcy Code.

The judge ruled Winter Park, FL-based Universal Partners LLC had no employees; a skeleton maintenance staff; $1,000 in its bank account; and a $220,000 annual business insurance premium payment coming due Feb. 6, all insufficient factors for a realistic reorganization.

This will mark the second foreclosure against the hotel in the last three years. Can Partners became involved with the property by buying a $17.5 million loan on the hotel from Fort Lauderdale, FL-based Bank Atlantic after the bank foreclosed on the asset. Cam Partners Investment IV, another subsidiary of Canyon Capital Realty Advisers LLC, holds a $5.7 million second mortgage on the property.