New Naniloa Bidder Part of Management at Hilo Hawaiian Hotel
A newly formed company has upped the bidding in the sale of the Naniloa Volcanoes Hotel.
David Farmer, bankruptcy trustee for the beleaguered Banyan Drive resort, on Monday informed the US Bankruptcy Court in Honolulu that Ramco Properties LLC had made a bid of $3.7 million for the hotel, 9-hole golf course and lease of the state property on which they sit.
The bid was $200,000 more than the one submitted by California-based America Asia Travel Center, which was the highest of three previous bids.
As required by the bankruptcy court, both the Ramco and American Asia Travel Center’s bids included an additional $1.5 million to pay state and county taxes and overdue lease payments owed by the resort.
Ramco’s bid was the subject of a hearing today before the bankruptcy court judge, who scheduled another hearing for 10:30 a.m. Tuesday, Nov. 12, to give Ramco time to present information on proposed Naniloa budgets and renovations.
According to state records, Ramco Properties was formed on Oct. 15. Listed as its agent is Gary Oda, who is president of Allied Builders System, an Oahu-based general contracting firm, which has the same address as Ramco.
According to the website for the US-Japan Council, Oda is also a managing partner of the Hilo Hawaiian Hotel, which is located near the Naniloa on Banyan Drive.
Oda could not immediately be reached for comment.
Farmer told Big Island Now that he has also been approached by another prospective bidder who he expects to make a bid for the Naniloa before Tuesday’s hearing.
So far, no bid has been submitted by First Citizens Bank which holds the mortgage on the Naniloa. The bank is owed approximately $11 million by Hawaii Outdoor Tours, the Ken Fujiyama company which has owned the Naniloa since winning the auction for its lease in 2005.
First Citizens foreclosed on the loan last year, but that action was put on hold by the Naniloa’s bankruptcy petition filed several months later.