Loeffler Takes On Challenge of Boesky’s Northview Motel Chain
When Robert M. Loeffler resigned in 1976 as court-appointed trustee for the fraud-riddled Equity Funding Corp. of America, he cited a need to relax, “gaze at the sun and the moon and the stars, and think about†the future.
Loeffler didn’t gaze for long, however. By 1977, he was a senior partner in the Los Angeles office of Jones, Day, Reavis & Pogue. And though Loeffler will retire later this month from the Cleveland-based law firm, he won’t be sitting still.
Instead, the 63-year-old lawyer will ring in the new year as chairman of Northview Corp., the San Diego-based company that, in addition to operating 43 motels in California and other Sun Belt states, has served as one of troubled arbitrageur Ivan Boesky’s investment vehicles.
Loeffler, who also will be president and chief executive, won’t comment on his plans for Northview, other than stating the obvious: The company will not play the arbitrage game that generated a $1.8-million loss for the third quarter ended Sept. 30. Northview also was forced to report a $4.8-million charge to cover $5.9 million in “unrealized losses†generated by Boesky’s arbitrage and investment activity.
“We have to decide what to do with the company,†Loeffler said during a telephone interview last week. “We have to decide what is the best employment of Northview’s assets.â€
“I don’t know what the hell (Loeffler) will do,†said an analyst who is familiar with Northview. “The hotels are worth something, but Boesky borrowed $80 million to $100 million for (arbitrage activities), and Loeffler will have to deal with that.
“Maybe the smartest thing he could do would be to sell the company. I just don’t know what he’s going to do, but he does face a clean-up type operation.â€
Loeffler replaces Dante Fabiani, Northview’s interim chairman.
Boesky gained control over Northview through the Beverly Hills Hotel Corp., which owned 80.5% of Northview’s stock. Although Denver financier Marvin Davis last week purchased the Beverly Hills Hotel for more than $100 million, Beverly Hills Hotel Corp. retains its controlling interest in Northview.
Boesky has turned ownership of his Beverly Hills Hotel Corp. stock over to his wife, Seema.
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