Intellectual Property
The sales didn’t include the intellectual property for the resorts because it was held by MSR, which wasn’t in bankruptcy.
MSR Hotels is one of a related group of companies that owned and operated the resorts, and it separately owns resort trademarks, logos and copyrights, according to the Five Mile complaint.
According to the Five Mile complaint, Barr, Kamensky, Shumaker and a fourth defendant, Mohsin Meghji, were allegedly conflicted because they served as directors of MSR at the same time they were directors of subsidiary companies that owned the resort hotels.
Paulson, based in New York, said in April that the Five Mile lawsuit was “completely without factual basis or legal merit.”
In its bankruptcy filing yesterday, MSR listed debt of between $50 million and $100 million and assets valued at less than $1 million.
MSR filed a motion in bankruptcy court yesterday seeking to dismiss the lawsuit, saying the allegations “conflict with factual findings this court made in the Chapter 11 cases.”
MSR claims Five Mile filed the lawsuit last month as a way to get around findings against it in the 2011 bankruptcy case.
“Five Mile’s blatant gamesmanship should not be countenanced and its vexatious litigation should be stopped once and for all,” said MSR lawyer Paul Basta of Kirkland & Ellis LLP in the filing.
The company’s biggest creditor holding an unsecured claim is CNL Plaza Ltd., which seeks rent payments totaling $118.6 million, according to the bankruptcy filing.