MSR Resort wins interim OK to increase DIP financing by $10 million

By Caroline Salls

Pittsburgh, Aug. 16 - MSR Resort Golf Course LLC received interim court approval to extend its debtor-in-possession financing to $75 million from $65 million to continue to operate its business without interruption and maximize the value of its estates, according to an Aug. 16 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the additional financing will allow it to continue to satisfy obligations, undertake capital expenditures and satisfy the costs of administering its Chapter 11 cases and some other portfolio-level expenses that arise over the next few months.

MSR Resort said in the motion that it is not requesting an extension of the existing Dec. 31 maturity date at this time.

The DIP lenders are CNL DIP Recovery Acquisition, LLC and Five Mile Capital II Equity Pooling LLC. CNL DIP Recovery Acquisition and Five Mile Capital II CNL DIP Administrative Agent LLC are the co-agents.

Interest on the DIP facility is Libor plus 300 basis points.

MSR Resort said it has agreed to pay a commitment fee equal to 1% of each DIP lender's commitment for the $10 million expanded portion of the facility.

The final hearing is scheduled for Sept. 25.

MSR Resort owns and operates five resorts. The New York-based company filed for bankruptcy on Feb. 1, 2011. The Chapter 11 case number is 11-10372.

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