Banc of California Seeks Dismissal of Hotel Laguna Bankruptcy Case

Banc of California urged a bankruptcy court to throw out the Hotel Laguna Chapter 11 case, alleging the hotel and its lender misled the court about a rent deferral agreement.

The bank, which holds a security interest in the property, said the hotel falsely told the court during a July 31 hearing that its postpetition lender had secured a deal with the property’s ground lessor to defer August and September rent payments. However, no such deal existed, the bank claimed in a Wednesday filing in the US Bankruptcy Court for the District of Delaware.

During the July 31 hearing on ...