The Southern California resort where AIG sponsored a luxury retreat after receiving federal bailout money is facing foreclosure.
The Los Angeles Times reports that the owners of the St. Regis Monarch Beach are in default on a $70 million loan. The newspaper cites unnamed sources knowledgeable about the debt who say the hotel will go to auction on July 7 unless the owners and lenders can negotiate a new agreement.
A hotel spokeswoman said Wednesday she was working on a statement and could not immediately comment on the report.
The hotel in Dana Point became a symbol of corporate excess when the giant insurer American International Group Inc. spent some $440,000 on a posh retreat for its executives.
Copyright AP - Associated Press