WILMINGTON, Del. — Hotel chain Hyatt Corp. has made an initial offer of $445 million for the assets of bankrupt Azabu Buildings Co. Ltd., owner of Hawai'i's Hyatt Regency Waikiki Resort & Spa.

U.S. Bankruptcy Judge Robert Faris on Dec. 7 authorized an auction of Azabu. Competing bids must be at least $452.5 million and increase in increments of $1 million. At the sale, set for March 12, Hyatt can increase its bid and would get a $5 million breakup fee plus up to $2 million in expenses if another bidder wins. Hyatt originally asked for a $13.3 million breakup fee.

The Hyatt offer "has triggered bidding and resulted in revised offers," Honolulu-based Azabu said in court documents. Trinity Investments LLC offered $450 million and has filed an objection to the sale with the court.

Azabu has said it will use money from the sale to repay creditors. Secured creditors, owed about $330 million, will be fully repaid, and unsecured creditors, owed about $4.8 billion, will receive a small portion of their claims, according to court papers.

The Azabu assets for sale at the auction will include the Waikiki hotel, which Hyatt manages, plus Azabu USA Corp., which owns a shopping center in Waikiki and other real estate.

Beecher Ltd., Preh Inc., Wac Inc., Nippon Capital Partners LLC and Nippon Portfolio Partners III LLC, with total claims of $103.8 million, filed an involuntary petition forcing Azabu into bankruptcy court in November 2005.

Beecher, which offered to purchase the hotel for $340 million a week before the filing, is objecting to the sale to Hyatt.

Waikiki First Finance Corp. holds a $192.5 million first mortgage on the hotel. Waikiki SF Corp. holds a $137.7 million second mortgage on the property.