M Waikiki seeks access to $2.5 million DIP facility to operate hotel

By Caroline Salls

Pittsburgh, Sept. 8 - M Waikiki LLC requested court approval to obtain $2.5 million of debtor-in-possession financing from the trustees of the Davidson Family Trust, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Hawaii.

The company said it needs the financing to continue to operate its principal asset, the Modern Honolulu hotel, on an ongoing basis.

The Davidson Group is the administrative agent.

Interest will be 15%.

The facility will mature on the earlier of six months from entry of the interim order and occurrence of an event of default.

The company is seeking interim access to $1 million of the DIP loan.

M Waikiki, a San Diego-based hotel investment company, filed for bankruptcy on Aug. 31. The Chapter 11 case number is 11-02371.

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