Nicky Hilton's new venture in South Beach has been put to a halt due to a legal battle with the condo hotel converter Robert Falor.
The deal also involved the owners of two South Beach hotels, the Edison and the Breakwater. Owners of those hotels are battling with the Falor Chicago group over a joint venture that turned sour. Separately the new owner of the 2 hotels Robert Falor has filed for bankruptcy to reorganize the two hotels.
Trouble started when lenders sued Falor for $ 36 million. The group was also sued by Oaktree capital management over several breaches of contracts by Falor regarding $20 million the group lent him in 2005. The new plan for the troubled property is to operate as a regular hotel and plans to convert the hotel were halted.
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