MSR Resort Golf, Marriott stipulation approved, exclusivity extended

By Caroline Salls

Pittsburgh, Feb. 23 - MSR Resort Golf Course LLC received court approval of a stipulation with Marriott International, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, the stipulation "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.

The company said the stipulation also secures the support of Marriott for the Doral sale process and the debtors' forthcoming plan of reorganization.

No specific amounts were disclosed in the stipulation.

In addition, MSR Resort said it has reached an exclusivity extension agreement with Midland Loan Services, Inc., 450 Lex Private Ltd., C Hotel Mezz Private Ltd., Metropolitan Life Insurance Co. together with wholly owned subsidiary MLIC Asset Holdings II LLC, Five Mile Capital SPE B LLC, MSR Resort's creditors' committee, Marriott and Waldorf-Astoria Management LLC.

Under that agreement, the company's exclusive plan of reorganization filing period will be extended to April 4 and its exclusive vote solicitation period to June 3.

A hearing on an exclusivity extension motion filed on Feb. 1 will be held on April 3.

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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