Bankruptcy Judge Brenda Moody Whinery ruled yesterday that the historic Lodge on the Desert will remain under control of a receiver appointed by a state court, at least until continuation of the hotel’s chapter 11 bankruptcy case is decided in January, the Arizona Daily Star reported today. In late November, hotel owner Lodge Partners filed its second chapter 11 bankruptcy in three years, saying that it had arranged a short-term loan and longer-term financing to successfully reorganize the business. The company had defaulted on payments required under a chapter 11 bankruptcy case filed in 2013 and closed last year. The hotel’s major secured creditor, Palatine Tucson LLC, filed a foreclosure action and prompted a state court to appoint a receiver for the hotel in early November. A foreclosure sale of the hotel was scheduled for Jan. 5.
