Hotel, condos of USA Capital affiliate for sale
Bankruptcy Judge Linda Riegle on Wednesday approved procedures for the sale of a hotel and condominiums for investors in failed USA Capital.
A bidder will pay a minimum of $25.1 million for a hotel and $10.8 million for 63 condominiums in Palm Springs, Calif., according to Gordon & Silver, the law firm representing a bankruptcy trustee.
Other bidders have the opportunity to buy the properties by offering higher amounts.
The hotel and condos are owned by USA Investment Partners, an affiliate of private lender USA Capital, which was put into involuntary bankruptcy for the benefit of investors who lost money to the private lender.
USA Capital became insolvent and filed for bankruptcy in April 2006 with $962 million in assets belonging to 6,000 investors. The company, which was controlled by Tom Hantges and Joe Milanowski, solicited investments from individuals for short-term mortgage loans to developers.
Bids are due Oct. 9. An auction will be conducted in bankruptcy court Oct. 15.
