Hotel Indigo files Chapter 11 to avoid foreclosure

The Hotel Indigo, at the corner of Calvert and Redwood streets, is 98 percent done, according to the attorney for its owners.
Mon, 08/09/2010

Owners of Hotel Indigo, a 10-story boutique hotel in downtown Baltimore that has remained stalled and vacant for nearly a year, have filed for Chapter 11 bankruptcy protection.

The bankruptcy filing on Friday in U.S. Bankruptcy Court cites several creditors that are owed more than $14 million for work on the luxury hotel located in the Kaiser Building at 207 Redwood Street.

The list of creditors includes $1 million to Koam Construction Inc., of Lansdale, Pennsylvania, $250,000 to Hyundai of Fairfax, Virginia, $112,850 to Design Glass of Gaithersburg and $90,497.78 to the City of Baltimore for unpaid 2010-11 property taxes.

James A. Vidmar, an attorney with Yumkas, Vidmar, Sweeney & Mulrenin, LLC, in Annapolis, who is representing the owners, 207 Redwood Management LLC, said the bankruptcy filing was made to stave off a foreclosure auction scheduled for Thursday.

"We intend to get going immediately on [the hotel] to get it open as soon as possible," Vidmar said on Monday.

The hotel sits at the corner of Redwood and Calvert Streets, near the Inner Harbor. Hotel Indigo is part of a chain of luxury boutique hotels operated by Hotel Intercontinental. But the development has struggled since construction began.

"I think construction took longer than we had hoped, and the economy did not help us," Vidmar said.

The original price tag for Hotel Indigo was $12.5 million.

Last August, the developer of the hotel, AMPAC Development Group Inc., of Columbia, was sued for almost $5.5 million by the general contractor, Koam Construction. Koam officials said that AMPAC had requested about $3 million in upgrades, but did not pay for them.

by Melody Simmons
The Daily Record