CRESTVIEW HILLS, Ky., Sept. 18, 2017 /PRNewswire/ -- On Friday, September 15, 2017, the new owner of the Knoxville Marriott, iSquare Management, falsely accused Columbia Properties Knoxville, LLC of violating the law by not paying employees of the Knoxville Marriott their final paycheck on September 15, 2017.
For more than a year, since the loan on the Knoxville Marriott matured in August 2016, all of the money from hotel operations has been paid directly to the lender, not Columbia Properties Knoxville, LLC, which has simply managed the hotel on behalf of the lender.
Since August 2016, by agreement between the lender and Columbia Properties Knoxville, LLC, the lender has periodically released enough of the cash from hotel operations to Columbia Properties Knoxville, LLC to pay the payroll for the Knoxville Marriott employees and to pay other hotel expenses.
Under that agreement, from August 2, 2017 when iSquare purchased the loan to September 5, 2017, when they bought the hotel, iSquare Management collected around $2.5 million in cash. Of that collected revenue, iSquare Management released approximately $800,000 to allow Columbia Properties Knoxville, LLC to pay operating expenses in August 2017, including payroll expenses prior to the final payroll.
Per the agreement and iSquare Management's adherence to it in August 2017, Columbia Properties Knoxville, LLC expected that iSquare Management would release money from the hotel's operations in time to make the final payroll on September 15, 2017, even though Tennessee law allows for an employee's final paycheck to be paid within 21 days of the end of employment.
But that is not what happened. Inexplicably, iSquare Management refused – and continues to refuse – to release the funds, despite the net cash flow they received from the hotel of $1.7 million in their first month of ownership of the loan.
To make matters worse, instead of explaining the whole truth to its new employees, instead of revealing to the media why these employees were not receiving a paycheck on September 15, 2017, iSquare Management pinned its failure to fund the payroll on Columbia Properties Knoxville, LLC.
Columbia Properties Knoxville, LLC appreciates the dedication and years of service of its Knoxville Marriott employees, and it will pursue the release of the funds from iSquare Management. One way or another, Columbia Properties Knoxville, LLC will see that its former employees are paid within the time provided by Tennessee law.
Media Contact: Jackie Reau, 1-513-9294263, email@example.com
SOURCE Columbia Properties Knoxville