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    Thursday, May 16, 2024

    Ramada owners file Chapter 11

    Mystic - The group that owns the closed Ramada Inn on Route 27 has filed for Chapter 11 bankruptcy protection, and the town of Stonington has been informed there will be a meeting of the creditors in federal court in New Haven on Feb. 28.

    Whitehall Avenue LLC of Trumbull owes the town $104,624 in back taxes, $29,294 in sewer use fees and $1,864 in trash pickup bills.

    On Dec. 20, 2010, Connecticut Light & Power shut off the electricity to the hotel because of an unpaid $88,000 bill. After CL&P shut off the power, Whitehall Avenue LLC brought in a generator to provide electricity. On Dec. 28, the company that owns the generator disconnected it because Whitehall had bounced two checks totaling $6,000. The hotel closed.

    On Jan. 5, CL&P restored electricity after it said a receivership group made a five-figure deposit on the bill. The 150-room hotel, reopened Jan. 21 but then closed again last week.

    Whitehall Avenue LLC, which filed for bankruptcy on Jan. 24, also faces lawsuits by eight entities in Connecticut court. In addition, a large group of people who say they had $276 annual pool memberships at the hotel say they have now lost their money. One member said the hotel collected money from her as late as Nov. 30, 2010.

    CIT Lending Service Corp. of Livingston, N.J., held the $4.6 million mortgage on the hotel. Whitehall attorney Peter Ressler of New Haven could not be reached for comment Tuesday.

    j.wojtas@theday.com

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