SARATOGA, N.Y. – The Saratoga Downtowner, a motel at a prime spot on the main drag in Saratoga Springs, has filed for Chapter 11 bankruptcy to freeze the foreclosure process, with SEFCU, a giant Albany-based credit union, having the only secured claim on the troubled property.
The 42-room motel listed $3 million of assets and $2.7 million of debt in its court filing earlier this week. The Saratoga Downtowner is located on Broadway in downtown Saratoga Springs, in the middle of a bustling commercial and restaurant strip. It had $786,000 in revenue last year, according to court papers.
SEFCU holds a mortgage note on a member business loan worth $2.5 million, according to court records. The records show earlier this year SEFCU started foreclosing on Asay Holdings LLC, the holding company for the Saratoga Downtowner. The case remains active in state Supreme Court in Saratoga County.
The motel has four creditors with unsecured debt, including Wells Fargo, which has an $86,000 credit line.
