Paulson Resorts to Be Sold to GIC After Auction Canceled
Government of Singapore Investment Corp. is set to buy a group of resorts owned by hedge fund Paulson & Co. for $1.5 billion after no competing bidders emerged for the bankrupt properties.
An auction for the properties was canceled after no competing bids were received, leaving GIC, a sovereign wealth fund, as the successful bidder, according to a filing today in U.S. Bankruptcy Court in Manhattan.
The sale comes after a joint venture that includes Paulson acquired eight resorts through a foreclosure last year. Five of the properties, including the Grand Wailea in Hawaii and La Quinta Resort & Club in California, then filed for bankruptcy protection.
The resorts sought approval in August for an auction with GIC acting as the lead bidder. The auction was scheduled for tomorrow. The Doral golf resort in Miami was sold earlier to Donald Trump.
GIC, a creditor in the bankruptcy case, has agreed to buy the Grand Wailea, La Quinta, the Arizona Biltmore in Phoenix, the Claremont resort in Berkeley, California, and property at the Doral, according to court papers.
The bid includes cash and debt GIC is owed, known as a credit bid, according to court papers. A spokesman for the sovereign wealth fund couldn’t be reached for comment.
The case is In re MSR Resort Golf Course LLC, 11-10372, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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