Guess we wait for the call to see how this shakes out...
The resorts owned by Paulson & Co. and Winthrop Realty Trust (FUR) reported a net loss of $9.8 million in May on revenue of $35.2 million.
The operating report filed with the bankruptcy court in New York shows an $8 million loss from continuing operations. The month’s loss stemmed largely from $7 million in interest expense and $5.5 million in charges for depreciation and amortization.
The Doral Golf Resort and Spa in Miami was sold to Donald Trump, reducing mortgage debt by at least $140 million, the resort operators said. The remaining resorts are the Grand Wailea Resort Hotel and Spa in Hawaii; the La Quinta Resort and Club and the PGA West golf course in La Quinta, California; the Arizona Biltmore Resort and Spa in Phoenix; and the Claremont Resort & Spa in Berkeley, California.
After foreclosing last year, Paulson and Winthrop put all five resorts into bankruptcy in February 2011 to prevent foreclosure of $1 billion in mortgages and $525 million in maturing mezzanine debt.
The properties listed assets of $2.2 billion and liabilities of $1.9 billion. An affiliate of Morgan Stanley (MS) purchased the five resorts in 2007 for $4 billion. Revenue in 2010 was $465 million.
The case is In re MSR Resort Golf Course LLC, 11-10372, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Thanks for the old news, shorty. Meanwhile, the stock is near a 52-week high. I suspect you don`t know much about the resorts and the surrounding circumstances. You just saw "bankruptcy court" and blurted...