Two years after Hammons' death, no new court developments

Yesterday marked the two-year anniversary of John Q. Hammons’ death, a key date in a legal dispute between the hotelier’s trust and a former investor. It appears no new action took place May 26, one of two stated deadlines for the cash sale of certain Hammons’ real estate.

Jonathan Eilian of J.D. Holdings LLC, a former investor in Hammons’ hotel developments, has the option to buy over 30 hotels and other properties owned by the trust of the late Hammons, and yesterday was a court-supported deadline.

An agreement penned in 2005, when the publicly traded John Q. Hammons Inc. privatized with the backing of Eilian’s $300 million loan, outlined the negotiating deadline of two years from Hammons’ death but also permitted an extension if sales agreements were not reached.

Executives with Springfield-based JQH Hotels & Resorts, Hammons’ surviving company, declined to answer Springfield Business Journal’s questions regarding property sales negotiations. A company spokeswoman only issued this statement: “The John Q. Hammons companies will continue to aggressively defend our interests during this ongoing litigation while actively pursuing our claims."

According to the Delaware Court of Chancery records, there are no new opinions or orders in the case related to the sale of Hammons’ properties.

SBJ reported in November the extended period would allow negotiations up to 54 months after Hammons’ death May 26, 2013. The later deadline indicates property sales could occur as late as November 2017, a conclusion by Springfield attorney Michael Textor after SBJ asked him to review court records regarding the language in the company’s 2005 privatization agreement.

The confusing language in the agreement led to an Oct. 1 opinion siding with Eilian, J.D. Holdings and other organized entities. Eilian had asked the court to declare the legal meaning of the stated deadlines in the agreement.