Article: Amfac, ERS near suit settlement

The state Employees' Retirement System is nearing a settlement of its foreclosure lawsuit against Amfac Hawaii, potentially posing a quandary for state officials.

The ERS sued Amfac in state Circuit Court two years ago, saying the former "Big 5" company defaulted on $77.4 million from principal and interest on a 1991 loan.

Repayment of the loan was secured by a mortgage on two 18-hole resort golf courses in Kaanapali, Maui, owned by Amfac Property Investment Corp. Amfac has contested the foreclosure and countersued the ERS.

If the settlement gives ownership of the Royal Kaanapali golf courses to the ERS, the deal poses a question. Does the state sell the courses now and take a loss, or keep ...

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