W Boston Residences wins reprieve from bankruptcy court
Jan 2011 31

A US Bankruptcy Court judge has just ruled in favor of the W Boston Hotel and Residences, and stopped Prudential Insurance Company’s attempt to take-over control of the project.

The ruling by the judge values the condo and hotel at sufficient collateral for Prudential’s $192 million loan. As such, the project will now have the time to prepare and implement its restructuring plan.

SW Boston Hotel Venture, the developer, expects to present its restructuring plan by the end of March and to emerge from bankruptcy court by the end of June.

As of now, approximately 34, 42% of the 123, condos have sold, with an estimated value of $25 million. Another 13 units are under agreement.

The Boston Globe reports that the developer has paid off part of its obligation to Boston and now owes $6 million of its $10 million loan.

UPDATE: The W Hotel has issued a press release: Court Ruling Clears Way for Continued Ownership of W Hotel and Sale of The Luxury Condominiums (warning, .doc)

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