Lasky partner has until July 21 to book Harbor Inn sale Warren must decide whether to buy hotel offered to Paterakis

Lodging

June 30, 1998|By Dennis O'Brien | Dennis O'Brien,SUN STAFF

Baltimore developer Otis Warren has until July 21 to decide whether to buy an Inner Harbor hotel or allow his partner, Michael W. Lasky, the owner of the bankrupt Inphomation Communications Inc., to sell it to developer John Paterakis Sr.

Warren sued Lasky's Harbor Hotels LTD in Baltimore Circuit Court this month to block the sale of Harbor Inn Pier 5, in the 700 block of Eastern Ave.

In the suit, Warren alleged that although they were partners for three years, Lasky failed to turn over financial information about the hotel's receipts and expenses.

Warren said he needed up to 105 days to study the hotel's financial records before deciding whether to buy out his partner with a counterbid to Paterakis' May 21 offer.

In an oral ruling, Baltimore Circuit Judge David B. Mitchell denied Warren's request June 18, saying Warren had three years to sue and should have sought a court order for the records before Paterakis' offer.

"In essence, the judge ruled that Mr. Warren slept on his rights," said Harry Levy, a lawyer for the firm representing Lasky.

Levy said Lasky, who is general partner, did not fail to turn over financial records to Warren, a limited partner.

He said the hotel was being renovated during the past three years and had just opened last fall.

"There weren't any records to turn over," Levy said.

Mitchell ruled that Warren is entitled to 60 days' notice of the pending sale, which was the time specified when he formed the partnership with Lasky in 1995 to purchase the hotel for $5.5 million.

"The court ruled that Mr. Warren gets 60 days, and that's all," Levy said.

Lasky's Inphomation filed for Chapter 11 bankruptcy protection Feb. 2, claiming assets of $1.2 million and liabilities of $26 million. A court-appointed trustee recently agreed that the company has $26 million in liabilities.

Paterakis, the H&S Bakery president who is developing the Wyndham Inner Harbor East Hotel nearby, has offered to pay $10.6 million for the 71-room hotel and assume the hotel's $2 million debt to the city.

Pub Date: 6/30/98

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.