Filing Alert: Fairmont Breakers Project Affiliate Files Chapter 11

Breakers Mezz I, LLC, a Long Beach, CA-based entity affiliated with the Fairmont Breakers hotel redevelopment, filed for Chapter 11 protection on Oct. 2 in the U.S. Bankruptcy Court for the Central District of California.

The filing comes after a Sept. 10 UCC notice from lender X-Caliber Funding that it planned to auction Breakers Mezz I’s equity in Breakers Development LLC, the entity behind the Fairmont Breakers project in Long Beach. The notice set a Sept. 26 public sale in Los Angeles. In Feb. 2024, X-Caliber and CastleGreen announced a refinance totaling about $122.2 million, including $64.45 million of bridge loans secured by a first mortgage and historic tax credits and $57.75 million of C-PACE financing.

The company reports $100 million to $500 million in assets and $50 million to $100 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-18796.

Key Parties

Counsel:

• Eric D. Goldberg
  DLA Piper LLP (US)
  Email: eric.goldberg@us.dlapiper.com

Signatories:

• John C. Molina – Chief Executive Officer

Equity Security Holders:

• Breakers HTC Bridge, LLC – 100% of Breakers Mezz I, LLC
• 6 Founders, LLC – 94% of Breakers HTC Bridge, LLC

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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