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Starwood Capital-led consortium restructures more than $300 million of debt in connection with overall recapitalization of Terranea Resort near Los Angeles, California

October 2010

Client(s) Starwood Capital

Jones Day represented a consortium led by Starwood Capital in restructuring more than $300 million of debt in connection with the overall recapitalization of Terranea Resort near Los Angeles, California. Terranea Resort has hosted several large conferences and a nationally televised wedding of contestants on ABC's The Bachelor.

Real estate developer and investor Lowe Enterprises recapitalized the Terranea Resort with the Starwood Capital consortium being the sole lender. The 582-room, 102-acre resort, built on the coastal site of the former Marineland of the Pacific theme park, become the subject of foreclosure actions by Corus Bank and Bill Gates' Cascade Investment LLC shortly after opening in May 2009. The FDIC sold Corus' various loans, including Terranea's loan, to the investor group led by Starwood Capital and TPG. In turn, the Starwood-led group bought Terranea's $160 million loan from Cascade.

As part of this representation, Jones Day successfully resolved numerous stop notices and mechanics liens filed by the general contractor, Turner Construction Company, and its subcontractors in connection with construction of the Terranea Resort. More than 50 lawsuits were filed and the value of these claims was more than $25 million. Settlement agreements were negotiated with Turner and its subcontractors resulting in dismissals of the pending litigation and completion of outstanding punch list items.

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