MSR Resort Golf Course seeks court OK of $30 million DIP facility

By Caroline Salls

Pittsburgh, March 4 - MSR Resort Golf Course LLC requested court approval of a $30 million debtor-in-possession facility, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

MSR said the DIP financing will allow it to satisfy some obligations and undertake capital expenditure projects that have been put on hold since it filed for bankruptcy.

The lenders are Paulson Real Estate Recovery Fund, LP and Five Mile Capital II Equity Pooling LLC, and the co-agents are Paulson Real Estate Recovery Fund, LP and Five Mile Capital II CNL DIP Administrative Agent LLC.

The facility will mature on the earliest of 12 months from closing, within 30 days of the interim order if the final order has not been entered, the closing date of a sale of substantially all of the company's assets, the effective date of a plan of reorganization, conversion of the Chapter 11 case or appointment of a trustee or examiner.

Interest will be Libor plus 300 basis points.

The company is seeking interim access to $5 million of the DIP financing.

A hearing is scheduled for March 15.

MSR Resort owns and operates five resorts, including the Grand Wailea Resort Hotel & Spa in Maui, Hawaii; the La Quinta Resort & Club and PGA West in La Quinta, Calif.; the Arizona Biltmore Resort & Spa in Phoenix; the Doral Golf Resort & Spa in Miami; and the Claremont Hotel Club & Spa in Berkeley, Calif.

The New York-based company filed for bankruptcy on Feb. 1. The Chapter 11 case number is 11-10372.

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