Paulson Puts MSR Hotel REIT In Ch. 11 To End 'Terrorization'

Law360, New York (May 9, 2013, 8:41 PM EDT) -- Paulson & Co. moved to put its real estate investment trust unit MSR Hotels & Resorts Inc. under Chapter 11 protection Wednesday in New York bankruptcy court, in an effort to avoid “continued terrorization” from a multimillion-dollar lawsuit by alternative investment fund Five Mile Capital Partners.

The REIT’s numerous affiliates, which once owned several luxury resorts across the United States before a bankruptcy sale, had already filed for bankruptcy protection in 2011, enduring several unsuccessful challenges from Five Mile. Paulson said Wednesday that Five Mile has...
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