Banyan Cay Resort gets final approval of $3.8 million DIP note

By Sarah Lizee

Olympia, Wash., May 18 – Banyan Cay Resort & Golf, LLC received final approval of a $3.8 million debtor-in-possession note, as well as final approval to access cash collateral, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Florida.

Prepetition lender U.S. Real Estate Credit Holdings III-A, LP (Calmwater) is the lender on the DIP note and has an interest in the cash collateral.

Interest on the DIP note is 12˝% per annum. After the maturity date or after an event of default, interest will jump to 15% per annum.

The maturity date is the earliest of the effective date of the plan, dismissal or conversion, or the appointment of a trustee or examiner; 21 days from the entry of an interim DIP order if the court has not entered the final DIP order; or the occurrence an event of default.

The company’s prepetition capital structure includes a $95.08 million foreclosure judgment entered on Feb. 28 in favor of Calmwater.

The West Palm Beach, Fla.-based golf resort owner filed bankruptcy under Chapter 11 case number 23-12386.

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