NATCHEZ — A U.S. bankruptcy judge sided with five local companies, which Grand Soleil reportedly owed a total of $1.6 million, in forcing the Grand Soleil into bankruptcy Aug. 10.

The judge allowed the Grand Soleil to file under Chapter 11 bankruptcy, despite the petitioning companies’ request the hotel file under Chapter 7, bankruptcy court documents said.

Chapter 11, the most common form of bankruptcy, frees a company from he threat of creditors lawsuits while it reorganizes its finances.

Chapter 7 bankruptcy usually leads to liquidation of a company unless its finances are settled under the direction of a court trustee.

Good Hope Construction, Farmer Electrical Service Company and Ketco filed a petition to force the hotel to go into involuntary Chapter 7 bankruptcy in May. Kimbrell Office Supply Company and Natchez Printing joined the petition July 20.

According to bankruptcy court documents, Grand Soleil owed the following amounts to companies involved in the petition: $1.1 million to Good Hope Construction; $468,000 to Farmer Electrical Service Co.; $12,000 to Ketco Advertising-Specialties; $5,437 to Kimbrell Office Supply; and $5,544 to Natchez Printing Company.

Under Chapter 11, Grand Soleil’s reorganization plan must be accepted by a majority of its creditors. Unless the court rules otherwise, the Grand Soleil will remain in control of the business and its assets.

Grand Soleil’s bankruptcy proceedings follow recent years of financial troubles and failure to develop a proposed casino project.

Britton and Koontz bank has initiated and canceled foreclosure proceedings against Grand Soleil four times in recent years. Grand Soleil also evaded foreclosure proceedings initiated by United Mississippi Bank in December 2009.