MSR Resort exclusivity extension jeopardized by Midland Loan objection

By Lisa Kerner

Charlotte, N.C., June 14 - MSR Resort Golf Course LLC's request to further extend its exclusivity periods could be stalled by Midland Loan Services, Inc., which filed an objection to the request, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Midland objects to MSR Resort's request for the entry of an order extending the debtors' exclusive period to file a Chapter 11 plan through Sept. 29 and the exclusive period to solicit acceptances of a plan to Nov. 28, the filing said.

The court should deny the MSR Resort's request because the debtors have not demonstrated cause necessary to justify an extension and the debtors' proposed process imposes downside risk on creditors without offering them any corresponding upside benefit or any protection during the interim."

Prior stipulated request

Previously the court extended the company's exclusive filing period to June 30 from June 1 and the solicitation period to Aug. 29 from Aug. 1. However, MSR Resort had requested that its exclusive periods be extended by 120 days, to Sept. 29 and Nov. 28, respectively.

MSR Resort, the official committee of unsecured creditors, Midland and others collectively known as the "Parties" agreed to a stipulation extending the exclusive periods to June 30 and Aug. 30 and rescheduling the hearing on the original motion on the 120-day extension to June 28, a prior filing said.

As previously reported, MSR Resort said it would use the extended exclusivity periods to implement a number of initiatives that will significantly affect its business plan. The initiatives include a restructuring of club membership agreements, the sale of the company's Doral Golf Resort & Spa and a restructuring, replacement or termination of existing resort management and branding agreements.

The company said its stakeholders will use these initiatives to evaluate its financial performance, and the initiatives will form the basis for a successful exit from Chapter 11 bankruptcy.

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. The Chapter 11 case number is 11-10372.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.