New London - The Lighthouse Inn owes various creditors more than $2.5 million - in addition to whatever is left to pay on a $1.84 million loan that the inn's owner, McGrath Hotels LLC, took out seven years ago from the Business Loan Center Inc. of New York City.

The Business Loan Center, represented by attorney Michael Sheehan of the New London law firm Conway & Londregan, has a foreclosure proceeding working its way through New London Superior Court. The mortgage holder asked Judge James Devine this week to grant its motion to appoint a receiver for the property.

In addition to targeting the inn's ownership group in its foreclosure proceeding, the mortgage holder is suing McGrath Hotels principal James McGrath.

The Business Loan Center also is claiming first priority in any proceeds from the sale of the inn by suing creditors The Lighthouse Inn Trust, the state Department of Revenue Service, the U.S. Internal Revenue Service, All American Foods Inc. of North Kingstown, R.I., U.S. Foodservice Inc. of Yantic, the U.S. Small Business Administration, Amguard Insurance Co. and Friendly Fruit Inc. of New Bedford, Mass.

It is not claiming priority over the city of New London, which, according to Tax Collector Maureen Farrell, is owed more than $60,000 in back real estate and personal-property taxes. She said delinquent taxes have been an ongoing problem at the Lighthouse Inn for at least four years.

”Prior to that, they were delinquent but making payments,” Farrell said.

L.HOWARD@THEDAY.COM

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