Naniloa to ask bankruptcy judge for lease extension

Published On: Sep 17 2013 06:19:00 AM HST

The operator of the Naniloa Hotel on the Big Island will go to bankruptcy court and ask a judge for an extension of the lease.

HILO, Hawaii -

The lease for the Big Island's Naniloa Volcanoes Resort in Hilo is up.

The hotel will now go to bankruptcy court and ask a judge for an extension of the lease.

The hotel failed to make a $250,000 payment that was due last month. The hotel still has 56 workers on staff and continues to take reservations.

The hotel's bankruptcy trustee says if the hotel were to shut down, employees would have a 45-day notice before being laid off.

"There was the impression that we were closing down immediately," said bankruptcy trustee David Farmer. "That is totally not the case. Any closure requires notice to the employees, to our guests, to our future bookings."

Hawaii County Mayor Billy Kenoi released the following statement: "It is time to cancel this lease and start over. It is time for us to start fresh with a new, responsible partner who will operate this facility properly."

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