A U.S. Bankruptcy Court judge approved a reorganization plan for theAnnapolis Ramada Hotel Friday, effectively removing a cloud that hashung over the business for more than a year.
"This is very good news," said R. Michael Floyd, the asset manager for the partnership which runs the hotel.
The judge's ruling allows the Ramada to come out of Chapter 11 bankruptcy "as a healthy and viable enterprise," Floyd said. "Management will no longer be continuously be distracted."
Floyd said the ruling settle debts totaling $10 million with creditors. "We can get onwith the business of running a first-class hotel," he said.
The ruling also resolves a year-old dispute between partners. The judge ruled that the Annapolis Ramada MGP Inc., controls the hotel. The judgesaid Lester Shor, the former general partner, has no authority over the partnership affairs.
Shor had claimed the partnership, represented by Floyd and Boone Wayson, seized control of the hotel in May 1990 while he was out of town tending to his wife, whom he said was illin Colorado.
Shor was reduced to an associate partner and was stripped of management control. He challenged the demotion in court and also filed a $12 million slander suit against Floyd, who he said madea false investigation into the hotel's finances.
He filed the suit after the hotel partnership filed a $24 million suit against him, charging he mismanaged the company.
Both cases are still active. The slander suit against Floyd, filed in County Circuit Court in Annapolis, hasn't been settled.
The suit against Shor, filed in U.S. District Court in Baltimore, is still in discovery stages.
The 197-room hotel in the 100 block Jennifer Road, across from the Annapolis Mall, opened in 1986 and has been in debt ever since. The hotel never closed.
Shor and his attorney, Roy Neidermayer, could not be reached for comment yesterday evening.