MSR Resort gets interim approval to access $30 million DIP facility

By Lisa Kerner

Charlotte, N.C., March 16 - MSR Resort Golf Course LLC was granted interim approval to use $5 million of its $30 million debtor-in-possession facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The court approved the use of cash collateral through Oct. 31.

A hearing to consider entry of the final order will be held on April 13.

As previously reported, 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 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.

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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