MSR Hotels & Resorts: bankruptcy court confirms Chapter 11 plan

By Lisa Kerner

Charlotte, N.C., Feb. 10 - MSR Hotels & Resorts, Inc.'s Chapter 11 plan was confirmed, according to documents filed Feb. 10 with the U.S. Bankruptcy Court for the Southern District of New York.

The plan and related disclosure statement were filed on Nov. 15.

As previously reported, the proceeds from the sale of the company's resort marks and any liquidation of MSR's estate will be distributed under the plan. A liquidating trust will be formed to make distributions.

Treatment of creditors will include the following:

• Holders of administrative claims, debtor-in-possession claims, priority tax claims and other priority claims will receive a share of first-priority beneficial interests in the liquidating trust;

• Holders of other secured claims will either be paid in full in cash, receive the collateral securing their claims or have their claims reinstated;

• Holders of Midland Loan Services claims will receive a share of a payment equal to 80% of total sale proceeds up to $10 million and 90% of total sale proceeds in excess of $10 million, up to a maximum of $12 million, plus any special servicer fee payable to Midland and the fees and expenses of counsel to Midland, 450 Lex Private Ltd. and C Hotel Mezz Private Ltd.;

• Holders of unsecured claims will receive no distribution; and

• Interests will be cancelled, and holders will receive no distribution.

MSR Hotels, a New York-based real estate investment trust, filed for bankruptcy on May 8, 2013. Its Chapter 11 case number is 13-11512.

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