The tomed but [WORD ILLEGIBLE] Fountain ebleas was sold today in federal bank rubley court told group of local real estate [PARAGRAPH ILLEGIBLE] soap distributors but not Amway itself.
The $6 million-cash component of the Hotelerama bid was smaller than either $8.45 million oppehnheimer offer or the $11.5 million. Claxton group offer.
However, lawyers for the parties, noted in court that it was impossible to compare the three bids on this basis alone because of the complex apples and oranges," nature of the three offers.
The Hotelorama bid consists of $4 million on cash, a $2 million letter of credit and the assumption of $17.8 million in mortgage debt owed to two [WORD ILLEGIBLE] companies. Connecticut [WORD ILLEGIBLE] and Kentucky Central [PARAGRAPH ILLEGIBLE] to resolve and could have significantly eliminated what would remain for the unsecured creditors.
Now it looks like suppliers to the Fountainebleau and other unsecured creditors are expected to get all or most of the approximately $4 million owed to them. Attorneys hinted that there might even be something left ever for Novads, who is an unsecured creditor to the tene of $2.6 million through his own Bloovack, Corp., also in bankruptcy.
Closing on the sale is set for Dec. 30, Padburst said later that Hotelerama intends to spend an additional $10 million to $15 million to refurnish the increasingly delamadated. [WORD ILLEGIBLE] and turn it [WORD ILLEGIBLE] hotel in the U.S." Besides [WORD ILLEGIBLE] properties the [WORD ILLEGIBLE] 75 per cent share of Hotelerama is owned by Stephen [WORD ILLEGIBLE] , a local real estate magnate who built a series of controversial skyscraper condominiums called [WORD ILLEGIBLE] Tower north of [WORD ILLEGIBLE] Beach [WORDS ILLEGIBLE] Helmsley, the country's largest real estate tycoon dropped out of the Hotelrama group last week.
The bankruptcy court argument by an arsenal of high-price attorneys for the different parties provoked sharp exchanges and a debate on what might be best for Miami Beach and its flagging tourist business.
"Miami Beach is on its knees," said Oppehnheimer attorney Shepard Broad. "What Miami Beach needs more than anything else is an infusion of capital from deep pockets from the north. Internally wer are starved."
Representing the Claxton group, Paul D. Cassidy said what was needed was not money butpeople, "Our offer will bring to Miami Beach people - thousands and thousands of people." he told the court referring to the intention of his investors to use the Fountainebleau as an anchor for the mass sale gatherings the Amway product distributors hold and which have been compared in their fervor to religious revival meetings.
Novack, 70, slipped away quickly after the liquidation order to avoid reporters and could not be reached at the Fountainbleau where he still resides and keeps an office.
Novak came to Miami in 1940 with what he told columnist Earl Wilson at the opening of the Fountainbleau was only carfare in his pocket.
"If this doesn't work out, I won't even have carfare." he said at the time.
Novack, who had been successful with a series of smaller hotels, bought the 14-acre beach front estate of rubber millionaire Harvey Firestone for $2.3 million along with 11 partners and eventually bought the partners out after the Fountainebleau was completed.
The 14-story Fountainebleau is the largest of Miami Beach's many hotels. It has 265 cabanas, two swimming pools, seven tennis courts, two gyms, five bowling lanes and an ice skating rink.
The construction of an addition called The Towers, provoked a suit from the adjacent Eden Roc Hotel, Which claimed the Fountainebleau was spiteufully attempting to block the sun from its own beach front.
The Fountainebleu has served as the locale for movies, and during national political conventions held in Miami it has been the focal point for backroom activity. In 1972, for example, it was the headquarters for Richard Nixon's Committee to Re-Elect the President or CREEP.