Paulson Granted Payout Extension On Bankrupt Hotels

by San Antonio Attorney

Paulson & Co. was given extra time to raise the payout on five luxury resort hotels it operates after the bankruptcy court judge granted the extension.

Hedge fund Paulson, which often invests in bankrupt and distressed businesses, bought the equity in the resort hotels in January from Morgan Stanley Real Estate through a foreclosure auction.

The resort hotels were put into bankruptcy court in just two weeks because it wanted to restructure the high end properties.

Financial adviser to MSR Resort and Houlihan Lokey managing director Saul Burian confirmed that the extension was approved by the judge.

After four months, Paulson the hotels are still in bankruptcy. There are plans to sell Doral, reorganize the management of Hilton hotel; and modify terms of club membership.

Major creditors have argued that the company already had enough time to make more progress. The company should instead accept the offer of Government of Singapore Investment Corp, which has a stake in Hyatt Hotels Corp. The offer is $1.5 billion.

Creditors and Singapore have argued to accept the offer so that the creditors could be paid.

During the hearing, Judge Seal Lane said that the bid of Singapore may have caused Paulson to think it can still get an even greater offer.

The court has given Paulson 120 days of extension, to create a reorganization plan for the business.

Paulson owns an investing empire with $37 billion in assets. He rose made a lot of money on an early wager that the mortgage industry would fall. Now, he is investing in that sector along with other bankrupt properties.

Besides the Doral, the U.S. luxury resort hotels are the Arizona Biltmore, Claremont Resort & Spa in Berkeley, California, Grand Wailea Resorts Hotel & Spa in Hawaii, and La Quinta Resort & Club.

Morgan Stanley Real Estate bought the five hotels plus three more in 2007 for approximately $4 billion.

 

–      Bankruptcy laws help debtors out of bad situations. You can hire a San Antonio bankruptcy attorney who can file the essential petitions for you.  This will save you time and stress in settling your debts.  .

 

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