Seizure and Bankruptcy
Here is the latest on the former CNL hotels.  The Bloomberg article is hard to follow, but it looks like junior lenders, led by hedge fund Paulson & Co., completed the foreclosure on the hotels, which Morgan Stanley had acquired in early 2007, and once getting control promptly put five of the the resort properites into bankruptcy.   This is the junior lender's (now owners) strategy to renegotiate and change the terms on the senior underlying debt.  The bankrupt properties included Hawaii's Grand Wailea and PGA West in La Quinta, California.  Paulson & Co., and the other lenders/owners will continue to manage the hotels through the bankruptcy process.