As the governor has proposed buying the Turtle Bay resort, the property owner is fighting legal efforts to place the sprawling North Shore resort under control of a court-appointed receiver.

Mortgage holder Credit Suisse has asked the courts to take control of the facility from owner Kuilima Resort Co. and place it in the hands of a California businessman while a $283 million foreclosure case is pending. Kuilima Resort opposes that.

Credit Suisse asked the court to appoint California businessman Douglas Wilson as receiver.

Since August 2007, Kuilima Resort "has not provided a scintilla of evidence that (it) has any ability to repay" an outstanding loan of $270,875,000 or accrued interest and late payment fees of $12,824,818, Credit Suisse lawyers argued.

"Under these circumstances — and with hundreds of millions of dollars at risk — the appointment of a receiver is necessary to preserve and protect security interests in the property as well as all other collateral," Credit Suisse argued.

Kuilima lawyer James Wagner said in response papers filed Jan. 7 that the mortgage loan is uncollectible in Hawai'i because it was made through a Cayman Islands-based subsidiary of Credit Suisse that is not licensed to do business in Hawai'i.

And even if the court disallows that argument and elects to appoint a receiver, Wagner said, there are better-qualified candidates for the job in Hawai'i than Wilson, who has limited familiarity with real estate or political issues here.

"The value of the resort is tied to the successful completion of the resort's development," Wagner said in his court filing.

If the development plans are stopped, the value of the resort will "drop significantly," Wagner argued.

"Continued development is at a crucial stage. Kuilima Resort Co. is in the last stage of receiving a critical bulk subdivision approval, essential for the resort's continued development," Wagner said.

In a sworn affidavit signed Jan. 7, Kuilima chief executive Nicola Jones, who knew nothing about Gov. Linda Lingle's purchase idea, said she expected political problems at the Legislature.

Last year, Jones said in the affidavit, she had to deal with some 40 House and Senate bills that "could have negatively affected the development" and she predicted more of the same this year.

"I expect the 2008 legislative session to again see numerous bills introduced which, if passed, could negatively affect the resort development project," Jones said.

Reach Jim Dooley at jdooley@honoluluadvertiser.com.