SUMMARY: Earlier today, Bomel Construction Co., Inc. - a contractor to and creditor of the debtors - filed a motion requesting that the jointly-administered chapter 11 bankruptcy cases of RadLAX Gateway Hotel, LLC and RadLAX Gateway Deck, LLC be transferred from the Northern District of Illinois to the Central District of California bankruptcy Court. The debtor companies own the Radisson Hotel at Los Angeles Airport, which is located at 6225 W. Century Boulevard in Los Angeles, California. Bomel Construction was hired to "design and build an eight-level 2,543 car stall cast-in-place concrete parking structure" which is currently unfinished and unusable.

RadLAX voluntarily filed for chapter 11 protection on August 17th in the bankruptcy court in Chicago, blaming the bankruptcy in large part on RadLAX Gateway Deck, LLC's inability to complete construction of a parking structure adjacent to the hotel due to the companies' lenders' refusal to advance funds for continuing construction. On the same day, companies operating a related hotel, the InterContinental Hotel Chicago O'Hare, also filed for bankruptcy protection. However, the cases related to the two hotel properties are being administered separately.

Bomel, which asserts that it is due approximately $15.5 million on the construction contract for the parking structure, argues that the bankruptcy cases should be transferred to California because the companies' assets (the hotel), the majority of the creditors, and outstanding litigation are all located in California. In contrast, Bomel asserts that the only basis for venue in Illinois is the location of the LLC's members and technical headquarters.

This pleading provided by netDockets, the Precedent Research System for Corporate Bankruptcy. With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find the best precedent.

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