CHARLESTON – A notice of auction letter has been sent to the Mountain Blue Hotel Group, the owners of Hilton Garden Inn in Morgantown.

The letter was sent Aug. 25 by the U.S. Nation Bank Association’s attorney, J. Patrick Jones of Campbell Woods.

“As a result of your default under the terms of the note and trust deed, notice is hereby provided that U.S. National Bank Association, as trustee for the benefit of the holders of Comm 2013-CCRE12 Mortgage trust Commercial Mortgage Pass-through certificates has elected to accelerate all sums secured by said deed of trust, and the balance set forth above is due and payable without further demand,” the letter states.

The payoff amount as of Aug. 25 is $18,822,851.95.

“The substitute trustee, at the direction of the creditor shall conduct a public sale of the property described in the…deed of trust and in the notice of trustee’s sale…” the letter states.

The trustee will sell the property at public auction to the highest bidder on Sept. 21 at 4 p.m.

“You are invited to attend this sale to protect your interest,” the letter states.

The hotel has been in the news lately for several financial issues. Just last week, the Monongalia County sheriff’s department raided the hotel to account for $150,000 in back taxes.

On Sept. 8, Mountain Blue filed a motion for a temporary restraining order and/or preliminary injunction, seeking to prohibit the hotel being auctioned.

“Given the fact that any of the plaintiff’s claims of default have been cured and/or the plaintiff has the ability to satisfy any outstanding obligations of the defendant that would jeopardize the loan via the cash management account, there is a probability that the defendant will ultimately prevail in this matter and the loan will not be declared accelerated,” Mountain Blue wrote. “Obviously, the sale by virtue of a trustee sale of the defendant’s primary asset, being the hotel located in Morgantown, West Virginia, would cause irreparable harm to the defendant.”

Mountain Blue alleged that many of the claims against it are speculative in nature.

A hearing on the motion for TRO has been set for Sept. 14 at 1 p.m. before U.S. District Judge Irene Keeley.

The lawsuit filed in the Northern District of West Virginia alleges a commercial breach of contract over the original $15,470,000 loan.

The lawsuit alleges the hotel is in danger of default, risking its Hilton franchise fee and barely getting by on meeting payroll.

U.S. District Court for the Northern District of West Virginia case number: 1:17-cv-00138

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Campbell Woods PLLC
1002 3rd Ave
Huntington, WV - 25701

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