MSR Resort, a hotel chain owned by Paulson & Co., has reached a settlement with its creditors, the Government of Singapore Investment Corp. and Five Mile Capital, Reuters reported. The deal, MSR says, will allow it leeway to come up with a plan to emerge from bankruptcy, Reuters wrote. Under the settlement, MSR will present its plan by September 1, 2012. The company filed for bankruptcy in February.
(Reuters) – MSR Resort, a hotel chain owned by Paulson & Co, has reached a settlement with the Government of Singapore Investment Corp [GIC.UL] and Five Mile Capital that it says will allow it leeway to come up with a plan to emerge from bankruptcy.
The two creditors had been fighting Paulson’s restructuring efforts for MSR, which includes the Doral Golf Resort & Spa, and objected to its request to the court for more time to have the exclusive right to come up with a reorganization plan.
The Singapore investment group had argued that it had a better plan that the company was ignoring — a standing offer to buy all five hotels.
In June, a bankruptcy court judge had overruled the creditor concerns and granted MSR Resort an extension, but that extension has since run out.
The company, which filed for bankruptcy in February, disclosed in a court filing that it had reached a settlement with the creditors and asked for a second extension.
In the document filed on Tuesday, MSR Resort said that under the settlement, the creditors had agreed not to object to its requests to the court for the exclusive right to present a plan through Sept. 1, 2012.
After that deadline, MSR Resort agreed that instead of asking for another extension, it would pursue a sale of the company.
The issue was initially due to be discussed at a hearing on Tuesday but is now expected to be addressed during an Oct. 11 hearing. (Reporting by Caroline Humer in New York; Editing by Lisa Von Ahn)