M Waikiki receives court OK of amended $9 million DIP credit facility

By Jim Witters

Wilmington, Del., Feb. 13 - M Waikiki LLC received final court approval Jan. 30 of a $9 million debtor-in-possession credit facility, according to documents filed Feb. 13 with the U.S. Bankruptcy Court for the District of Hawaii.

The DIP facility through the Davidson Family Trust carries a 15% interest rate and a maturity date of April 30.

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

Termination of the debtor's exclusive period for filing a reorganization plan and associated disclosure statement on or after March 16 will constitute a default under the DIP agreement.

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

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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