MSR Resort looks to increase DIP loan to $90 million, extend maturity

By Caroline Salls

Pittsburgh, Nov. 15 - MSR Resort Golf Course LLC requested court approval to expand and extend its debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the company is looking to increase the current $80 million commitment by $10 million, with $5 million of that additional amount to be available on an interim basis.

In addition, MSR is asking the court to extend the DIP financing maturity date to Jan. 31 from Dec. 31.

According to the motion, the extra financing will allow the company to continue to satisfy specified obligations, undertake capital expenditures and satisfy the costs of administering its Chapter 11 cases and other portfolio-level expenses that arise over the next few months.

MSR Resort said it will borrow all of the new $10 million commitment from Five Mile Capital II Equity Pooling LLC, as opposed to borrowing evenly from Five Mile and CNL DIP Recovery Acquisition, LLC, as it has done so far in the Chapter 11 cases.

An interim 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.

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