MSR Resort receives court approval for its exclusivity settlement

By Sahara Marte

New York, July 18 - MSR Resort Golf Course LLC was granted approval of its exclusivity settlement at a hearing Wednesday in the U.S. Bankruptcy Court of the Southern District of New York.

The court approved the motion regardless of an objection from its creditors.

Judge Sean Lane ordered MSR Resort to continue revising the wording of the agreement until both parties are satisfied.

"I think it's a matter of language," said Lane. "It takes a lot to work it out."

He asked the company to complete its revisions by July 31.

As previously reported, the term sheet outlines an exclusivity settlement with MSR's indirect equity owners and official committee of unsecured creditors to facilitate its exit from Chapter 11.

The debtors and the equity holders "have agreed that any plan of reorganization other than a plan providing for an auction of all or substantially all of the debtors' assets in which the equity does not serve as a stalking horse bidder or new equity sponsor shall provide certain treatment to the holders of certain general unsecured claims," the motion requesting approval of the settlement stated.

The committee has agreed to support the extension of the exclusive periods for filing a Chapter 11 plan and soliciting plan acceptances and to support the debtors' plan process by supporting any qualifying plan filed on or before Aug. 1.

"The term sheet strikes an appropriate balance between protecting the debtors' creditors by providing substantial recoveries to unsecured creditors and permitting the debtors to pursue their plan process with the support of the committee," the MSR motion states.

MSR Resort owns and operates five resorts. The New York-based company filed for bankruptcy on Feb. 1, 2011. The Chapter 11 case number is 11-10372.

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