Lehman Brothers Holdings Inc. (the lender) outbid two other qualified bidders for the 404-room Ritz Carleton in Kapalua, which was foreclosed in September after institutional investors and Maui Land & Pineapple Co. defaulted on a loan, most recently valued at $268 million. ML&P was counting on sales of its 107 luxury condos to pay back their debt but the downturn in the economy made sales slow.
Lehman Brothers filed for bankruptcy in September 2008 and is in the process of being liquidated. It plans on operating the Hotel until real estate prices rise and it can sell.
