In 2007, two LLCs, RadLAX Gateway Hotel and RadLAX Gateway Deck, bought a Radisson Hotel and an adjacent lot at Los Angeles International Airport. Their goal was to renovate the hotel and build a parking garage on the lot next door. To finance the project, RadLAX took out a $142 million loan that was secured by a lien on all of its property, from Amalgamated Bank.
The renovations proved to be more expensive than anticipated, and within two years RadLAX was out of money. The company still owed more than $120 million on the loan, with more than $1 million in interest accruing every month. Out of options and with no other sources of money available, RadLAX declared bankruptcy under Chapter 11.
