Friday, 1 July 2016
Last updated 8 hours ago
Aug 23 2012 | 10:16am ET
Singapore's sovereign wealth fund has offered to take a group of high-end hotels and resorts off Paulson & Co.'s hands for $1.5 billion.
The Government of Singapore Investment Corp. is the "stalking horse" bidder for the MSR Resort hotel group, which Paulson bought last year from Morgan Stanley and then put into bankruptcy. The two sides have agreed to a $28 million break-up fee if MSR picks another bidder at an Oct. 25 bankruptcy auction.
The MSR group includes Phoenix's Arizona Biltmore Resort & Spa, the Claremont Resort & Spa in Berkeley, Calif., Hawaii's Grand Wailea Resorts Hotel & Spa and the La Quinta Resort & Club in California. Paulson sold one of the hotels, the Doral Golf Resort & Spa in Miami, to Donald Trump.
GIC, which is a creditor of the resort chain, said it would pay $1.12 billion in cash and up to $360 million in debt-related claims.