Disney Co. Moves to Foreclose on Troubled Hotel

The Walt Disney Co. has filed a motion in U.S. Bankruptcy Court in Los Angeles to foreclose on the 242-room Grand Hotel in Anaheim, which is currently in bankruptcy.

The partnership that owns the hotel, Grand Hotel and Associates of Santa Monica, filed for Chapter 11 reorganization and is aggressively trying to sell it. Disney, which holds the mortgage on the 10-story hotel, could be a possible buyer but is not negotiating with the owners, an attorney said.

“We are negotiating with several other buyers right now--and they are not Disney,” said Daren Brinkman, attorney representing the limited partnership that owns the Grand Hotel. “Disney had an option to buy the hotel in 1992 and didn’t,” he added.

The hotel’s fate and whether foreclosure proceedings will start will be discussed at a court hearing Wednesday in Los Angeles.

Brian Korbell, reportedly one of the partners who owns this hotel and another Anaheim hotel, Inn at the Park, could not be reached for comment. Located near the Anaheim Convention Center, the 497-room Inn at the Park is also in bankruptcy reorganization.