The motel will continue to operate under the control of the receiver, or trustee, named in court papers as Smiling Hospitality Inc. The company’s president, Kirby Payne, is an experienced operator of Holiday Inn Express hotels and has more than 30 years experience as an operator and receiver of hotels, court documents state.
Payne will take over all operations of the company and Smiling Hospitality will post a $30,000 bond.
A receivership is a form of bankruptcy in which a company can avoid liquidation by reorganizing with the help of a court-appointed trustee.
Under Million, the Holiday Inn defaulted on its loan to Guarantee Bank and Trust, and failed to pay real estate and property taxes. Montrose County treasurer said the hotel has not paid $257,116.91 in property taxes for 2008 and 2009.
Guaranty Bank is the ‘successor-in-interest” to First Main Street Bank, which initiated a commercial loan to Million Agricultural Investments in 2003, originally for $8 million.
Attempts to reach Aaron Million and Smiling Hospitality Inc. were unsuccessful.