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cedarrapidsfom

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Kronos hotels has defaulted on a 48.5 million dollar loan. The court has appointed a new hotel/recovery company to run Cedar Rapids and from what I am told all other Kronos properties. The new hotel company is Prisim hotels from Dallas Texas. This news is fresh and I am sure there will be erroneous reports. I will update with fresh, solid information ASAP. In the meantime we got to keep those bastards from running to Malasya with the dam money!! Stay tuned and breathe a sigh of relief, the end is near!!

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flhotel

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The Pensacola properties are included in the $48.5 mil.  I sent copies of their mortgages to the e-mail address on this site.....

UnitedAgainstKronos

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Kronos is trying to fight it.  I have talked to several properties earlier today..I have been aware of this since early this morning.  There will be more hearings...Kronos doesnt have a leg to stand on..give up now.


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UnitedAgainstKronos

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And which court were they in that decided this?


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inkititrust

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Legal battles take awhile.  However Alabama did offer some encouragement with the forclosure on that property

DrinkingHelps

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We all are very aware of Prism Management from the events of today and yesterday.
However there are many questions still left unanswered and our management and employees have the right to know what they will be walking into if they signed the rehire packets. Does anyone have clarification on the actual owners at this point? All evidence points to a continued partial ownership from Kronos top management. Prism not only won't answer this question, but says they don't even know who technically owns our hotel now. Also, no handbooks, and it looks like most at our property won't be reimbursed for continued NSF checks, etc. Does any of that really worry anyone else? I'm very curious the other responces from other hotels on thier Prism reps, because ours have no clue how to setup the credit card machines, time clock, and don't even understand the rehire packets.

We have less than 24 hours at this point to decide to stay or not and I need help for our managers, line employees, and thier familes. Please tell me we're not all blindly walking into another disaster. Good luck everyone.

UnitedAgainstKronos

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I would suggest you all stick it out.  They are there to make your life better and the customers life better. 

They can not answer that because the hearings are still ongoing.  Chucky Morais and company are fighting tooth and nail. And honestly why not.  Those properties have been almost purley profit since they barely paid anything.

The reality is Kronos has a history of this.  Look at the pdf and tiff files I posted on the main page.

These jokers are done.  I dont know the situation on how Kronos was made or voluntarily stepped aside for this next month but if they did it voluntarily it was to get some attention  off of them.  Well here at kronoshotelsllc.com we wont back off.  Not till this is over...

Again...my personal opinion is to stick it out for  now.  At least you know your checks wont bounce.  I can not comment on the reimbursements at this point...check with your local department of labor.

Hope this helped a lil.

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flhotel

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Prism is working on behalf of the lender. (bank)  The bank required them to step in order to protect the value of their assets and keep the values of the hotels from erroding any more.   You will not have to worry about bounced checks from this point forward.  It is unlikely that Prism will pay you for previous owed money.  It will be like starting as a new employee again.  Prism will be managing the hotel and paying bills with the lender's (bank's) money.   It is likely that once the hotels are stabilized- the banks will put the hotels for sale again.  It is possible that prism will buy a few of the hotels that would fit into their portfolio, but I doubt they would buy all of them.   Prism only owns a handful of hotels, but they manage nearly a hundred properties all over the US.  Most of the properties they manage are bank-owned (foreclosures).   This is not anything new for Prism, but I doubt that they have had to walkin on such a mess-- as most foreclosed hotels have a staff and usually when a hotel is under forclosure the vendors are mostly paid and employees paid too.   I would not sweat it.  Take the job with Prism-- it could not get any worse. Could it?

UnitedAgainstKronos

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Very well said...and if it could get worse...someone let me know how


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flhotel

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I would not be concerned that the people from Prism seem un-organized.  It is rare that they would have to enter 10+ hotels all at once.  I am sure that their resources are spread thin at this time.   They want the hotels to be successful and their first order of business will be to secure a staff.  They most likely are getting paid a flat fee to manage each hotel monthly and if they are successful in turning around the hotels, they will earn greater fees on a sliding scale.  From this day forward, vendors will be paid and you will be able to buy supplies again.  They will get all the necessary permits and get the tax situation figured out.  The bank will not want all those liens on all of their properties.   In the end-- the banks will see a HUGE loss.  I guess their punnishment for entering an agreement with these crooks in the first place.

UnitedAgainstKronos

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It doesnt help that they prolly passed abandoned hotels along the road that looked better then the ones they walked into.  Kronos ruined all of these properties.  Such a shame because some of them were beautiful, some had personality, and some were rustic....but now they are just run down.  A real shame.


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DrinkingHelps

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Thank you for the quick response. Btw, we've been saying everyday that it can't get any worse. Last night 80 employees at our attached restaurant were let go without warning. That's 80 more people without a job in this sh*t economy. They were our family and friends. This was an independently operated corporate restaurant, however closed as a direct result of back taxes, probable loss of a shared liqueur license, and that Kronos wouldn't even take their calls to get answers. They had nothing to do with this mess and were innocent in this fight.

Ahh yes, one question though I'd like to relay tomorrow. There seems to be something about the month of August. This seems to be when all the walls went up around Kronos. This is when all paychecks stopped clearing and insurance stopped, also when we last had real contact at all with the Atlanta office. Any word about the back story; also is this when they stopped paying unemployment insurance? I would think that prior, they were paying to some degree and that most of us could still collect. Thanks

UnitedAgainstKronos

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No it just appears that way.  Media outlets only keep stories back so far.  Also it was contained on a city per city basis mainly.  The property I was at was bought june 15, 2007 and the first checks bounced the first payroll..we chaled up up to growing pains at first. 

There have been reports that show peoples UET has not been paid since last september...they were just able to hide it back then a little better.

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inkititrust

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Reply with quote  #14 
Giving all that has transpired here, Prism has the inevitable task of trying to keep the hotels from literally collapsing while not being able to jump head long into the relief effort because of the pending case. 

As for the banks, I wouldn't worry about them the government has already started bailing some of them out.

And finally if the bank/government wants to sell the Lancaster property I'll give them 5 bucks and then go rent a bulldozer.

sorry for the rant, stay strong
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