MSR Resort seeks 120-day exclusivity extension to continue progress

By Lisa Kerner

Charlotte, N.C., Sept. 6 - MSR Resort Golf Course LLC is seeking another extension to its exclusive periods for filing a plan of reorganization and soliciting votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend its exclusive filing period by 120 days to Jan. 27, 2012 from Sept. 29 and the solicitation period by 120 days to March 27, 2012 from Nov. 28.

A hearing is scheduled for Sept. 20.

MSR Resort said it needed more time "to continue value-maximizing initiatives and discussions with creditor constituencies."

The debtors have and secured a signed letter of intent from a stalking horse bidder for a $170 million stalking horse bid for the Doral property, excluding the White Course, which will remain owned by the debtors, the filing said.

The $170 million bid for the Doral will potentially deleverage the outstanding prepetition debt by 11%, potentially reduce the debtors' annual mortgage interest expense by $9.5 million, and eliminate the debtors' single largest capital expenditure obligation.

In addition, the debtors are close to completing the PGA West and Citrus Club membership restructuring that has a face value of the $185 million and reduces their contingent Club membership obligations by about 50%.

In June, the court extended the company's exclusive filing period to Sept. 29 from June 30 and the solicitation period to Nov. 28 from Aug. 29.

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.

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