Crowne Plaza San Marcos Golf Resort files for bankruptcy

Owners of the Crowne Plaza San Marcos Golf Resort in downtown Chandler have filed for Chapter 11 bankruptcy protection.

The filing by Denver-based San Marcos Capital Partners LP halted a trustee sale that had been scheduled for March 29.

Business at the hotel will carry on as usual, and no managers or employees will change, said general manager Frank Heavlin.


Financial trouble became evident in October when the property went into receivership under Kirby Payne at Smiling Hospitality in Rhode Island.

A court hearing on whether the receivership will continue is set for this week.

Bankruptcy Court papers filed last month listed assets of the owners at less than $50,000 and liabilities between $10,000,001 and $50 million. The number of creditors is between 1,000 and 5,000.

The bills owed creditors are disputed, according to court papers. Among the claims on file are $2.3 million to Arizona Public Service Co. and $3 million to InterContinental Hotel Group. The bill at Mission Linen Service of Phoenix is $1.4 million and at Phoenix-based Shamrock Foods, it's $2 million. Chandler is owed $318,000 for utilities.

Other creditors and the bills, in round figures, include Sysco, $1.8 million; Scottsdale-based Lions Gate Communications, $501,548; Humana, $443,000; GE Capital, $385,000; Southwest Gas Corp., $289,000; Stern Produce of Phoenix, $325,000; and Fireman's Fund Insurance, $376,000.

The San Marcos limited partnership involves 22 members, including Heavlin, who said that business is good despite the bankruptcy.

"We are running the hotel's day-to-day operations, and it has been a very successful first quarter for us," he said. "We are honoring all reservations, group bookings and weddings, and we are out there aggressively seeking future business."

Heavlin said he is optimistic the hotel will survive the bankruptcy.

Whether the property will remain in receivership is in dispute. San Marcos Capital Partners' main bankruptcy attorney, Duncan Barber of Denver, met with a lawyer for the lender, Guaranty Bank and Trust Co., and demanded that the hotel be turned over to the owners.

The bank said it would be detrimental to remove the receiver, and it asked the Bankruptcy Court to decide the issue. That hearing is set for Friday.

Payne, the receiver, echoed Heavlin in saying business is up.

"I understand the hotel's going to be pretty much sold out in the next couple of weeks," he said.

"They have a great sales team, and it's a property that's very attractive to area companies and brides and social events. It's just a wonderful hotel in a wonderful location."

by Luci Scott The Arizona Republic Apr. 4, 2011 12:00 AM





Crowne Plaza San Marcos Golf Resort files for bankruptcy