Two towers in turmoil Defense
October 24, 2009
This is an especially thorny Monday that would unravel the Commercial Court of Paris: the towers Heart Defense. For a year, a conflict between the owner placed backup procedure and creditors about the largest building complex in Europe: two towers consisting of 355 000 m2 of offices, located in the district of La Defense business. Lehman Brothers had acquired Heart Defense at the height of the boom in March 2007 to 2.11 billion euros. To finance the transaction, the investment bank in New York – combined with co-investors, whose subsidiary land from General Electric – while providing 600 million euros in equity and borrowed the remaining 1 52 billion.It makes editing complex securitized debt is sliced and placed with a string of creditors.
After the bankruptcy of Lehman Brothers in September 2008, creditors are quick to demand repayment of debt. Among them, large institutions such as BNP Paribas, Dexia, Axa, and Goldman Sachs, met in a pooled securitization (CTF).
In that case, justice has already occurred twice. In November 2008, it found the bankruptcy of Lehman and placed under the safeguard procedure company owner, Hold of Defense (Hold). A second time last September 9, it validated the backup plan proposed by Holder and the Building Manager, Atemi. The sale of the towers and the repayment of the loan are then pushed into 2014.Placed in receivership, the rental income Heart Defense should be managed by an administrator to pay for building maintenance while beginning to pay off the debt.
The issue of rent
Yesterday's decision has upset this pattern. It does not affect the backup plan, but his change entails the issue of rents. The Commercial Court has decided that they should be reimbursed to the CTF, so the creditors, the latter agreeing to pay the landlord's share of the rents needed to pay for building maintenance.
CTF-side, the decision is of course accepted. "It complies with the law on sales of debt and the final decisions of the Court of Cassation, welcomed Gilles Saint Marc, Partner, Gide Loyrette and the CTF Board.It recognizes that creditors own the rental payments to the borrower even if the latter is the subject of a collective. "
As owners, contacted by Le Figaro, they did not wish to speak. But, as the administrator, the backup plan would be compromised. "Creditors will take as collateral all revenue and retain fine in an amount greater than what they are owed under the plan," said Georges Jourde well, Partner Veil Jourde and board of directors. Everything depends, in fact, the 90 million monthly rent, from the creditors repayment to the company that owns Hold.
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