MSR Resort, Miller Buckfire settle $8 million restructuring fee claim

By Caroline Salls

Pittsburgh, July 27 - MSR Resort Golf Course LLC requested court approval of a settlement with former financial adviser and investment banker Miller Buckfire & Co., LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

MSR said it terminated Miller Buckfire as financial adviser and investment banker before it filed for bankruptcy.

However, Miller Buckfire said the company owes it an $8 million transaction fee under the letter agreement for its services in connection with a Jan. 28, 2011 foreclosure on 100% of the membership interests MS Resorts III, LLC.

Even if the foreclosure did not trigger payment of the transaction fee, the company said Miller Buckfire claims that it would still be owed the $8 million fee on account of any MSR restructuring within the next six months because of a 12-month tail period included in the letter agreement.

Under the settlement, Miller Buckfire will have a $4 million general unsecured claim against the MSR Resort debtors.

Miller Buckfire will receive $2 million in cash within seven days of the final approval of the settlement.

A hearing is scheduled for Aug. 17.

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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