From Pacific Business News
Marriott Calls M Waikiki's Bankruptcy 'Self-Defeating'
Marriott International executives said September 1 that they will sue the owners of the Waikiki Edition hotel for “tens of millions of dollars” in damage to their brand, but that they are backing off their fight to resume management of the troubled hotel following the abrupt Chapter 11 bankruptcy filing on August 31 by the hotel’s owners, M Waikiki LLC. In a prepared statement September 1 Marriott International’s Executive Vice President and General Counsel Ed Ryan said the owner’s bankruptcy filing is a “self-defeating step that ultimately involves the destruction of significant value of the owner’s asset,” but that Marriott will do all it can to help with the transition.“While we are astonished at such a self-destructive course of action, we of course respect the law and the fact that a bankruptcy filing freezes any other legal orders for the time being,” Ryan said in the statement. “It is clear that this was a desperate step by the owner and legal advisers to circumvent the New York court’s order returning the hotel to our rightful management and control. They will obviously stop at nothing in the effort to escape from the contractual obligations they made to us when they signed the management agreement.” Click here for the full story.