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HOUGHTON - The Holiday Inn Express in Houghton, owned by Oliver Companies of Duluth, Minn., is continuing its battle for financial survival. The struggle was scheduled to lead to a foreclosure sale at 11 a.m. today. However, after countless efforts to renegotiate the mortgage payments, Oliver Companies decided the best move was to file for Chapter 11 reorganization.

For Seth Oliver, president of Oliver Companies, this is a completely new process.

"I've never gone through this before," he explained. "So I don't really know what happens."

What he does know is that he has 90 days to file a plan, the case will be looked at by a court in Michigan and they have every hope of completing the process without losing any jobs.

"A judge will ultimately decide on the fate of our property," he said. "We're allowed to continue operating it, but we have to file a reorganization plan to the court within 90 days. Then a judge will decide what happens."

The judge will rule whether the plan is a viable solution to the problem. If it is a good solution, they will help negotiate with the bank to keep the Holiday Inn Express open under current management.

"Hopefully we get a judge that is pro-Houghton and pro-jobs in Houghton to come up with a decision that will allow everyone to stay employed," Oliver said.

The hotel employs 25 to 30 people, depending on the season, Oliver said, adding that business is fine. Before paying their mortgage payment the hotel is doing very well, operating at a profit. However, the mortgage payment is just too much for the business to handle, and that's where the problem stands.

Oliver said his company has no desire to lose the property and is doing what they can to keep it.

"Our end-point goal is to keep the property," Oliver said. "Generally speaking when we buy a property, we don't sell them, we keep them in the long-term."

Oliver Companies needs to file its plan by July 29 and will likely meet with a judge shortly thereafter.

Michael H. Babcock can be reached at mbabcock@mininggazette.com.