Hammons bankruptcy puts litigation on hold

The Springfield News-Leader reported recently on John Q. Hammons Hotels & Resorts’ chapter 11 bankruptcy case, and its relationship to a lawsuit brought by New York investment firm JD Holdings against the Springfield-based hospitality developer.

Hammons’ June 2016 bankruptcy filing has put the JD Holdings lawsuit and trial in a holding pattern.  The suit was brought to enforce provisions of a 2005 agreement that allowed the late John Q. Hammons’ then-publicly held company to return to his private ownership. JD Holdings is controlled by investor Jonathan Eilian.

Attorneys for JD Holdings claimed in a July 8 motion that the 2005 deal was set up so that Hammons could avoid paying a significant amount of taxes related to it. Before the Hammons bankruptcy filing was announced, the trial had been scheduled to begin July 26 of this year.

Hammons Hotels and Resorts currently has 35 properties in 16 states; eight of those facilities are in Missouri.  John Q. Hammons passed away in 2013 at age 94.

To read more on this story, visit www.news-leader.com.

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