A developer and a group of investors are expected to vie today to run the Queen Mary attraction and its surrounding Long Beach waterfront property, city officials said.

The officials said the bidders — real estate developer O&S Holdings in Santa Monica and a group called Save the Queen — would appear in U.S. Bankruptcy Court in Los Angeles.

The city, which owns the Queen Mary, has been trying to find a new partner for the ship after its leaseholder, Queen’s Seaport Development Inc., filed for bankruptcy protection two years ago. The effort is aimed also at resolving debts and raising new capital.

“It’s been an ongoing problem and we’re hoping to finally be able to put it behind us,” City Atty. Robert Shannon said.

Last month, Save the Queen had bid $49 million to purchase the ocean liner’s lease outright and pay all creditors in full, but then withdrew the offer because of what it characterized as the city’s refusal to agree to key issues. The group declined to comment further. www.latimes.com

Posted: 08|14|07 at 10:26 am. Filed under: US News.