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GIC may have upper hand in luxury-hotel row

Papers filed to charge that Paulson, Winthrop missed interest payment

Published on Aug 16, 2012 6:00 AM
 

The Government of Singapore Investment Corporation (GIC) may have gained the upper hand in a protracted tussle with two United States funds over four luxury resorts.

GIC, a major creditor to the properties, filed documents in New York's federal bankruptcy court last week charging that hedge fund Paulson & Co and Winthrop Realty Trust missed an interest payment on the debt.

Missing the payment would trigger an auction, the Wall Street Journal reported.

The properties, including the 780-room Grand Wailea Resort Hotel & Spa in Hawaii and the 796-room La Quinta Resort & Club PGA West in California, have been operating under bankruptcy-court protection for 18 months after the prior owners were unable to pay off $1.5 billion in mortgages.

 
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Background story

The properties... have been operating under bankruptcy-court protection for 18 months after the prior owners were unable to pay off $1.5 billion in mortgages.