MSR Resort Golf eyes stipulation with Marriott to secure support for Doral sale

By Lisa Kerner

Charlotte, N.C., Feb. 16 - MSR Resort Golf Course LLC asked the court to approve a stipulation among MSR Resort, the debtors in possession, Marriott International, Inc. and MSR Resort Hospitality Partners, LP and authorizing MSR Resort to consummate the stipulation, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is set for Feb. 16.

The stipulation, according to the filing, "strikes an appropriate balance" between protecting the debtors' creditors from the risk associated with continued litigation and permitting the debtors to complete their "value-maximizing sale process for the Doral."

The stipulation is a compromise, fixing the cost of rejection of the Marriott management agreement at an amount between the debtors' and Marriott's projections.

Also, it secures the support of Marriott for the Doral sale process and the debtors' forthcoming plan of reorganization.

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, 2011. The Chapter 11 case number is 11-10372.

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