The turmoil in the nation's credit markets is having an impact on Maui Land & Pineapple Co.'s plans to build high-end homes in Kapalua.

In a filing with the Securities and Exchange Commission yesterday, Maui Land said its chief lender, Lehman Brothers Holding Inc., failed to release $35.6 million in financing that was due last month.

Lehman, which is financing most of construction of the West Maui project, filed for bankruptcy protection Sept. 15 because of mounting losses from the subprime mortgage market.

Shares of Maui Land slipped 51 cents to $26.25 on the New York Stock Exchange yesterday.

"There is no assurance that Lehman will provide the requested funding or that Lehman or the other lenders will provide any future funding under the loan agreement," Maui Land said in its SEC filing.

The project — the 146-unit Ritz-Carlton Club & Residences — is being developed by Kapalua Bay Holdings LLC and is more than 80 percent complete.

Maui Land owns 51 percent of Kapalua Bay and Marriott International owns 34 percent. Steve Case's Exclusive Resorts LLC owns the remaining 15 percent.

According to the SEC filing, Kapalua Bay's investors have agreed to advance money to pay the project's contractor Nordic/PCL.

Maui Land did not disclose the amount that it has agreed to advance.

Maui Land has about $3 million in cash and a $30 million credit line, a recent filing at the SEC said. The company also issued $40 million in senior convertible bonds in July.

Maui Land said it anticipates being able to arrange further financing if Lehman continues to withhold funds, since the project is more than 80 percent complete.

The company said it may look to refinance the Lehman debt with new lenders or seek new capital from Kapalua Bay's partners.

In 2006, Lehman and other lenders agreed to provide up to $370 million in financing for the Kapalua project. So far, the group has provided $201 million.