The fight to bring four marquee U.S. hotels out of bankruptcy is turning increasingly nasty, with a hedge fund accusing the company that oversees their mortgage debt of "bullying" management into accepting a $1.5 billion offer from Singapore's sovereign wealth fund, Dow Jones DBR Small Cap reported yesterday. Five Mile Capital, a hedge fund that owns a junior portion of the resort's debt, claims in court papers that Midland Loan Services, the so-called special servicer of the resorts' commercial mortgages, colluded with KSL Capital Partners and GIC RE, the real estate arm of Singapore's sovereign wealth fund, to force the resorts' management into accepting the stalking-horse bid. Midland, the special servicer for mortgage lenders owed $1 billion, blasted what it called the hedge fund's "incendiary" charges.
