Country Inn files for bankruptcy

Yesterday’s scheduled public sale of The Country Inn was canceled less than three hours before the Berkeley Springs hotel was to be sold on the courthouse steps. The sale had been set for 2 p.m. on Tuesday, July 17.

5042 Holdings Limited, which owns the inn, filed for Chapter 11 bankruptcy protection, causing the sale to be canceled, said Attorney Michael L. Scales, the substitute trustee for CNB Bank, Inc.

The foreclosure sale was arranged by CNB Bank, which is owed about $3 million by the hotel’s owners. As of April, the inn faced recorded liens, debts and court judgments of more than $4.4 million.

More details about the bankruptcy filing will be in an upcoming Morgan Messenger.