Bank of America is asking a federal judge to enforce its $35 million settlement with businessmen brothers Michael and Steven Roberts over money they borrowed to renovate six hotels they own.
The bank contends the brothers didn’t meet the settlement agreement’s deadline to sell the hotels to repay the money they owe. Under the agreement, reached in July, the brothers had until last Thursday to sell the hotels.
According to a letter the bank’s lawyer sent the Robertses’ lawyers on Oct. 29, no contracts to sell any of the hotels were in effect. The settlement allows the bank to seek the entire amount owed if the hotel sale proceeds did not total at least $25 million.
Counting principal, late charges, past due interest, extension fees and attorneys’ fees, the Robertses owe Bank of America $35,916,969.24, according to the bank’s court motion, filed Monday.
Lawyers in the case declined Tuesday to comment on the bank’s motion.
Under previously announced terms, the Robertses agreed to sell their hotels in Atlanta, Dallas, Houston, Tampa, Fla., Spartanburg, S.C., and Shreveport, La. The proceeds would go to pay off Bank of America, the brothers’ attorney, Thomas DeWoskin, said in July.
The agreement came after months of legal maneuvering. Bank of America sued the two personally over the loan, which was used to renovate the hotels. The Roberts brothers then filed for Chapter 11 bankruptcy on each of the hotels.