One set of partners in the ownership of Bishop's Lodge has filed for chapter 11 protection in U.S. Bankruptcy Court in Delaware, the Santa Fe New Mexican reported. The move by the property's majority owners came against the wishes of its managing member, Richard Holland. "We did not need to file for bankruptcy," Holland said yesterday. Holland and his partners own the property on the north side of Santa Fe, and Auberge Resorts Collection operates the resort. The filing on Monday seeks to restructure $78 million in debt incurred to create the ultra-luxury, 100-room resort that opened in July with rooms typically priced above $1,100 per night. The debtor is officially listed as BL Santa Fe LLC, the company Holland established when he acquired Bishop's Lodge in 2014 to upgrade the property to a luxury resort. Holland said the partners own a majority interest in BL Santa Fe and dispute Holland's claim that he remains managing member. Holland used similar words in May when a complaint was filed against BL Santa Fe LLC in First District Court asking to put the Bishop's Lodge property in foreclosure for nonpayment of a $43 million loan from Fortress Credit Co. LLC. Ten days later, the court issued a "notice of excusal."
