Queen Mary Operator Seeks Chapter 11 Bankruptcy Protection

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The operator of the Queen Mary ocean liner filed for Chapter 11 bankruptcy protection Tuesday in an effort to avoid the possible termination of its lease with the City of Long Beach over $3.4 million in disputed rent.


QSDI Inc. made the filing in U.S. Bankruptcy Court in Los Angeles after months of attempting to persuade Long Beach officials to apply rent credits the company claims it is owed by the city. The company maintains it is owed credits from money it has spent renovating and operating the landmark hotel, restaurant and entertainment destination.


“This has been a matter of ongoing contention and controversy between the city and QSDI,” said Joseph Eisenberg, a partner with Century City-based Jeffer Mangels Butler and Marmaro LLP, which is representing QSDI. “It is our belief that we are entitled to these rent credits. In order to preserve the status quo and avoid a termination of the lease, QSDI invoked its right to file and did file a case under Chapter 11.”


The action came a couple weeks after the city of Long Beach served the company with a notice of default and a demand to pay the $3.4 million in rent.

“The City is now prepared to litigate the merits of its position in Bankruptcy Court, and remains confident that we will prevail,” responded City Attorney Robert Shannon, in a prepared statement.

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