Unity House gets OK to sell Lotus at Diamond Head Hotel

From Pacific Business News

Unity House Inc. received approval May 17 from a Hawaii bankruptcy court judge to sell its Lotus at Diamond Head Hotel to Nobuka USA Inc. for $18.5 million.

As part of the sale, Unity House will purchase the fee interest on the parcel of land on which the hotel is located and include it with the 51-room Lotus at Diamond Head. Unity House will buy the fee interest on the land from Bank of Hawaii Trust Real Estate for $5.6 million, according to bankruptcy court documents.

Jim Boersema, Unity House’s chairman, told PBN that the sale of the hotel and land must be concluded by July 15, and that he expects the Honolulu nonprofit will emerge from Chapter 11 bankruptcy after the sale is completed.

Unity House filed for bankruptcy on April 14 to buy time to secure funds to repay a loan of $5.5 million, plus interest, from MK Pacific LLC.

Unity House Inc. is a nonprofit corporation affiliated with Hawaii labor unions. It was founded in 1951 by Arthur Rutledge and provides services and programs to more than 10,000 beneficiaries.