Hooters Hotel’s owners aim to extend exclusivity period
Nov. 29 looms as another showdown date in the duel to control the off-Strip Hooters hotel.
At a hearing on that date, the current owner will ask a U.S. Bankruptcy Court judge for an extension of its exclusivity period, due to expire at the end of the day. Under bankruptcy law, the only the incumbent ownership of a company in Chapter 11 can propose a reorganization plan during the first 120 days of the case.
Hooters ownership will ask for a two-month extension, to Jan. 28. According to court papers, Hooters adviser Innovation Capital has identified 22 potential investors in the hotel, but expects to need until January to narrow the field to a final offer.
Also on Nov. 29, the affiliate of Canyon Capital Realty Advisors that holds almost all of the Hooters debt will request the exclusivity be terminated. Canyon Capital would then proceed to a foreclosure or sale where it would be allowed to credit bid, meaning that the total amount of its debt could substitute for cash dollar-for-dollar. This would almost certainly make Canyon Capital the winner.
Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.
