Maui Land & Pineapple Co. yesterday disclosed that selling one of its golf courses last month for $50 million helped it restructure debt agreements that had raised "significant uncertainty" about the company's ability to stay in business.

Kahului-based Maui Land said in its annual report filed yesterday that financial losses last year and other factors put it out of compliance with revolving loan and line of credit agreements at the end of last year.

The lending agreements, which include requirements for Maui Land to maintain minimum levels of net worth and liquidity, were amended last month in conjunction with the deal to sell The Plantation Course at Kapalua Resort.

The amendments essentially removed Maui Land from danger of triggering defaults on its credit lines and other debts.

Maui Land in its report said the golf course sale, along with recent workforce reductions and plans to sell more real estate this year, will provide additional liquidity to help the company weather the economic downturn that has hurt its resort, real estate and pineapple operations.

"As a result of these actions, the company believes it will be able to continue to be in compliance with its covenants under its borrowing arrangements and will continue operating as a going concern," Maui Land said in its report.

Robert Webber, Maui Land president and CEO, could not be reached for comment yesterday.

Maui Land announced a definitive agreement to sell the 18-hole course on March 17, and completed the sale on March 27. Under the deal, Maui Land will pay the new owner $4 million a year and continue operating the course under a two-year lease that can be extended.

The new owner is TY Management Corp., a company recently formed by Tadashi Yanai to acquire the golf course. Yanai is chairman and chief executive of Fast Retailing Co. Ltd., a Tokyo-based company that operates more than 760 apparel stores under the UNIQLO name mostly in Japan.

Maui Land said in its annual report that the golf course on 263 acres was part of 1,437 acres of West Maui land used to secure a $90 million line of credit obtained in November 2007.

Proceeds from the sale repaid some outstanding debt under the credit line, which was reduced to $45 million.

Also, the credit line's maturity date was extended from Nov. 13, 2009, to March 13, 2010, the interest rate was raised and all financial covenants were eliminated except for minimum liquidity and a limit on new indebtedness.

The company also said it amended a $25 million revolving loan to suspend financial covenants this year, though in return the loan's maturity date was accelerated to March 2010 from June 2011 and the interest rate was increased.

Maui Land said it is working with lenders to extend maturity dates of its revolving loan and credit line agreements beyond 2010.

Long-term debt of Maui Land maturing in the next five years includes $45 million this year, $57.8 million next year and $31.2 million in 2013.