MSR Resort wins approval for $5 million increase in DIP financing

By Jim Witters

Wilmington, Del., Oct. 16 - MSR Resort Golf Course LLC received approval for an additional $5 million of interim debtor-in-possession financing, bringing its total interim DIP loan to $80 million, according to documents filed Oct. 16 with the U.S. Bankruptcy Court for the Southern District of New York.

The additional funds will allow the debtors to "continue to satisfy certain obligations, undertake capital expenditures and satisfy the costs of administering these Chapter 11 cases (including professional fees) and certain other portfolio-level expenses that arise over the next few months," the company said when requesting the increase.

MSR did not request an extension of the Dec. 31 DIP maturity date.

DIP terms

The terms of the DIP remain the same as originally approved.

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.

A final DIP hearing is scheduled for Nov. 20.

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.

© 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.