U.S. Bankruptcy Court Judge Robert Faris in Honolulu signed an order yesterday confirming Chicago-based Hyatt as the highest bidder, according to court documents. Final approval of the sale is contingent on confirmation of Azabu's reorganization plan.

"This court confirms the Hyatt stalking-horse bid as the highest and best bid received prior to the bid deadline," Faris said in court papers.

A hearing is set for May 3 to determine whether Azabu's disclosure statement can be sent for creditor approval. The disclosure statement outlines the reorganization plan's terms.

Azabu's assets include he Waikiki hotel, which Hyatt manages, plus Azabu USA Corp., whose real estate holdings include a shopping center in Waikiki.

Five creditors filed an involuntary petition forcing Azabu into bankruptcy court in November 2005. Those creditors, with claims totaling $103.8 million, were: Beecher Ltd.; Preh Inc.; Wac Inc.; Nippon Capital Partners LLC; and Nippon Portfolio Partners III LLC.