One of the East Bay's most iconic buildings has filed for bankruptcy.
Morgan Stanley purchased the resort nestled in the Berkeley hills in 2007 but failed to turn a profit and this week its lenders seized the property and four others to help close $1.9 billion in debt.
The New York-based financial services company purchased the Claremont, and the four other hotels lost to lenders, for $6.6 billion four years ago.
Paulson & Co. will take over the hotels and says it plans to borrow $30 million to run the hotels. The hedge fund is banking on a dramatic recovery in the struggling hospitality market.