Bishop’s Lodge owner gets interim OK of DIP loan; hearing set

By Sarah Lizee

Olympia, Wash., Aug. 31 – BL Santa Fe, LLC, which owns the Bishop’s Lodge resort in Santa Fe, N.M., received approval to access $2.92 million of a proposed $5.86 million superpriority senior secured debtor-in-possession facility, according to an interim order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, mezzanine lender Juniper Bishops, LLC has agreed to provide the financing.

If the DIP facility is fully funded, a $2.64 million additional senior DIP loan may be provided to the company by senior lender DB Bishops Lodge LLC.

The loan from Juniper Bishops would have a 10% exit fee, while the loan from DB Bishops would have a 1% exit fee.

The company also received interim approval to use the cash collateral of its pre-petition secured lenders.

Combined hearing set

In addition, the court scheduled a combined hearing on confirmation of the company’s pre-packaged Chapter 11 plan and approval of the related disclosure statement on Oct. 7.

The company entered into a restructuring support agreement with Juniper Bishops and DB Bishops Lodge to implement the pre-packaged plan of reorganization.

The plan restructures the obligations owed to DB Bishops and resolves the obligations owed to Juniper Bishops.

In short, the plan provides for 100% of the membership interests in BL Santa Fe to go to Juniper BL HoldCo, LLC, a wholly owned subsidiary of Juniper Bishops. In return, the mezzanine loan will be satisfied in full, Juniper BL HoldCo will finance the completion of the resort and renovations and its operations, the mezzanine borrower, BL Santa Fe (Mezz), LLC, will receive the economic entitlement to receive from Juniper BL HoldCo some back-end distributions from resort operations and/or disposition, and the senior loan will be restructured.

Under the plan, administrative expense claims, professional fees, mezzanine lender DIP claims, senior lender DIP claims, senior lender expenses and tax claims will be paid in full.

All general unsecured claims will be paid in full or reinstated.

The Santa Fe, N.M.-based hotel owner filed Chapter 11 bankruptcy on Aug. 30 under case number 21-11190.

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