The owner of the Turtle Bay Resort on O'ahu's North Shore yesterday declined to comment on a published report that the company may not have enough cash to meet a loan payment due at the end of June.

Standard & Poor's Leveraged Commentary & Data, a trade publication covering the debt markets, reported Thursday that Turtle Bay's $400 million in debt was trading at a slight discount as a result of lenders' concerns about the company's ability to make the interest payment.

Abby Latour, the report's author, said Turtle Bay has found a buyer for a hotel and the land beneath it, which would bring in new capital. But she said the hotel sale is not expected to close until the buyer completes its due diligence.

"Therefore, the company faces a tight deadline before interest payments are due," Latour wrote.

Nathan Hokama, a spokes-man for the resort, had no immediate comment.

A spokeswoman for the resort's Los Angeles-based owner, Oaktree Capital Management LLC., also had no response.

Oaktree, which manages more than $35 billion in assets, is planning a major expansion of the 880-acre Turtle Bay Resort that will add up to five new hotels with 3,500 rooms and condominium units, as well as four public parks.

In June 2006, the company said it was seeking partners for the expansion.

The project has drawn strong opposition from residents and community leaders who say it will significantly affect traffic, infrastructure and the environment on the North Shore.

Some North Shore residents have praised the plan as one that would bring much-needed jobs to the area.