The Bishop’s Lodge hotel in Santa Fe, N.M., part of the Auberge Resorts Collection, filed for bankruptcy Monday blaming mismanagement and construction delays amid a feud between the luxury resort’s owners, WSJ Pro Bankruptcy reported. The resort, which has been adding guest rooms and new amenities like horseback trail-riding and trout fishing, filed a chapter 11 petition in the U.S. Bankruptcy Court in Wilmington, Del., seeking to restructure close to $80 million in debt. Owned by private investors and run by high-end resort manager Auberge Resorts LLC, Bishop’s Lodge enters bankruptcy with the support of most of its owners and an agreement to transfer a 100% stake to a senior lender in exchange for roughly $34 million in debt forgiveness. Construction on the resort was originally scheduled for completion in mid-2018, though after a series of delays it was only able to initiate a “soft reopening” on July 1. HRV Santa Fe LLC, a private company and stakeholder in the resort, previously served as manager. HRV hired different general contractors to renovate the property but dismissed them, causing delays and cost overruns, according to a declaration filed to the court by Michael Norvet, president of the holding company that owns the resort.
