M Waikiki granted court approval to increase and extend DIP facility

By Caroline Salls

Pittsburgh, May 21 - M Waikiki, LLC received court approval to amend its debtor-in-possession credit agreement to increase the amount of the loan and extend the maturity date, according to a May 18 filing with the U.S. Bankruptcy Court for the District of Hawaii.

Under the amended facility, the company will obtain up to $15.3 million in financing. This amount includes the $9 million M Waikiki was authorized to borrow under previous court orders.

The maturity date was extended to Aug. 10 from April 30.

In addition, the company said the loss of exclusivity was removed as a termination event under the DIP credit agreement.

Two new termination events tied to M Waikiki's failure to confirm a joint plan of reorganization proposed by the company and the DIP lender were added, the motion said.

M Waikiki said it would not emerge from bankruptcy by April 30. As a result, it needs additional financing to continue to fund its post-bankruptcy administrative expenses.

M Waikiki, a San Diego-based hotel investment company, filed for bankruptcy on Aug. 31, 2011. The Chapter 11 case number is 11-02371.

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