Lehman Subsidiary Commences Voluntary Chapter 11 Proceeding for Canyon Ranch Living Miami Hotel; Seeks to Conduct

  Lehman SubsidiaryCommences VoluntaryChapter 11Proceeding for Canyon Ranch
  Living Miami Hotel; Seeksto Conduct Auctionand SaleUnder Section 363

                 Enters into“Stalking Horse”SaleAgreement

Business Wire

NEW YORK -- June 2, 2014

FL 6801 Spirits LLC, a wholly owned subsidiary of Lehman Brothers Holdings
Inc. (“Lehman”), and three of its wholly owned subsidiaries (collectively “FL
Spirits”) have elected to file voluntary Chapter 11 petitions today in the
United States Bankruptcy Court for the Southern District of New York (the
“Court”) seeking bankruptcy protection for its condominium hotel property in
Miami Beach that is operated and managed as a Canyon Ranch Living Hotel and

FL Spirits has also filed a motion to pursue a sale process under Section 363
of the Bankruptcy Code. To this end, FL Spirits has entered into an
acquisition agreement with a “stalking horse” bidder, 360 Miami Hotel & Spa
LLC. Upon a successful closing of the transaction, the project will be managed
by the Enchantment Group, a premier operator of award-winning resorts and
destination spas, including Mii amo, a destination spa at Enchantment Resort.
Under the proposed agreement, the purchaser will acquire the hotel lot
(including the spa) and 13 condominium units for $12 million subject to higher
and better offers. The sale agreement contemplates a Court-supervised auction
process, which is designed to achieve the highest or best offer for FL
Spirits’ assets. The agreement with the purchaser sets the floor, or minimum
acceptable bid, and is subject to Bankruptcy Court approval and certain other

The current operator of the hotel, Canyon Ranch Living, is not a debtor, and
operations at the property are expected to continue without interruption,
during and after any court-approved sale and closing. Canyon Ranch Living is
not affiliated with Lehman and is managing the hotel and condominium
facilities pursuant to a management contract.

The court filing related to the petition and sale process can be found
athttp://cases.primeclerk.com/flspirits(Docket #14-11691).


Lehman Brothers Holdings Inc.
Kimberly Macleod, 646-285-9215
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