Lehman Subsidiary Puts Canyon Ranch Hotel Into Bankruptcy

MIAMI— Spirits LLC, a wholly owned subsidiary of Lehman Brothers Holdings Inc. and three of its wholly owned subsidiaries (FL Spirits), have filed for Chapter 11 bankruptcy protection for its Canyon Ranch Living Hotel and Spa condominium property in Miami Beach.

The voluntary Chapter 11 petitions were filed in US Bankruptcy Court for the Southern District of New York on Sunday. FL Spirits has filed a motion to pursue a sale of the facility and reports in a press announcement that it has entered into an acquisition agreement with stalking horse bidder, 360 Miami Hotel & Spa LLC. Upon a successful closing of the transaction, the project will be managed by the Enchantment Group, a premier operator of award-winning resorts and destination spas, including Mii amo, a destination spa at Enchantment Resort in Sedona, AZ. Under the proposed agreement, the purchaser will acquire the hotel lot (including the spa) and 13 condominium units for $12 million subject to higher and better offers.