M Waikiki seeks court approval of $550,000 emergency DIP loan increase

By Caroline Salls

Pittsburgh, Dec. 12 - M Waikiki LLC requested emergency court approval to increase its debtor-in-possession financing by $550,000, according to a Friday filing with the U.S. Bankruptcy Court for the District of Hawaii.

The company said it expects to finalize negotiations for a more substantial financing arrangement with an extended maturity date in the near future.

In the meantime, M Waikiki said it needs to borrow $550,000 more under the original $2.5 million loan with the Davidson Family Trust because of a delay in the timing of collection of several large receivables.

According to the motion, M Waikiki expects to draw down the funds remaining under the current facility this week.

The company said the extra financing will allow it to pay "critical expenses" through Jan. 6.

M Waikiki, a San Diego-based hotel investment company, filed for bankruptcy on Aug. 31. The Chapter 11 case number is 11-02371.

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