US Calls Foul On MSR Resort's Ch. 11 Plan

Law360, Los Angeles (January 10, 2013, 5:36 PM EST) -- The U.S. government on Wednesday objected to MSR Resort Golf Course LLC’s Chapter 11 reorganization, saying the resort owner’s planned financial restructuring and portfolio sale was an attempt to dodge responsibility for $331 million in taxable gains.

“The plan proposes to create tax liabilities the debtors estimate to be approximately $331 million with allegedly no recourse by the [Internal Revenue Service] to recover on these liabilities,” Preet Bharara, U.S. attorney for the Southern District of New York, wrote in his objection. “Indeed, debtors affirmatively seek to...
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