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7. Dispute Over Modern Honolulu SettledJuly 10, 2012 By: Newswire
Good news from Hawaii today: The Honolulu Star-Advertiser is reporting that the owner of The Modern Honolulu hotel in Waikiki has settled a dispute with the property's former operator, Marriott International, in a move that clears the way for the property to exit bankruptcy.
Modern owner M Waikiki LLC will pay Marriott an undisclosed sum in return for the hotel management firm dropping a lawsuit and withdrawing its opposition to a Chapter 11 reorganization plan for the 353-room hotel that Marriott helped design and open two years ago. The amount of the payment was not disclosed in U.S. Bankruptcy Court filings.
Bankruptcy Judge Robert Faris ruled in early June that a reasonable estimate of how much Marriott should be paid for lost management fees and expenses was $20.7 million. Marriott had sought $72 million for what it contended was an unjust breaking of a 30-year management contract.
M Waikiki is to make the settlement payment by July 30 and satisfy all other debts as part of an amended reorganization plan filed Monday.