- Paris Commercial Court Rules in Favour of Judicial Attribution Proposal to Reorganise Debt Structure
- Resolution Avoids Court-led Liquidation of Assets; Enables HPI to Implement Strategy to Maximise Recoveries to Noteholders
LONDON, Dec. 17, 2014 /PRNewswire/ -- Hatfield Philips International ("HPI"), a leading NPL and debt advisory firm with best-in-class loan servicing capabilities, today announced the Paris Commercial Court (the "Court") has ruled in favour of its proposal to reorganise the debt structure of the €242 million Target Loan (the "Loan") in the Titan Europe 2006-3 securitisation.
"We are pleased with today's ruling as it marks the culmination of our efforts over the past 18 months to facilitate a resolution that protects the interests of noteholders," said Blair Lewis, Chief Executive Officer of Hatfield Philips. "The efforts have resulted in the landmark achievement of a CMBS Lender emerging from a French safeguard proceeding with solvent control of the borrowers."
HPI had been working closely with the Borrower and its subsidiaries to facilitate a consensual resolution since the companies, which own an approximately 272,000-square-metre portfolio consisting of 15 offices and light industrial units throughout France, went into safeguard protection in March 2013. French defence company Thales is the largest tenant. In accordance with HPI's proposal, the Court approved a plan that terminates the safeguard process and provides HPI with control of the underlying assets through the transfer of ownership interests in the subsidiaries to a holding structure set up for the purpose by HPI. As a result, HPI has full discretion to implement an asset management strategy to maximise recoveries to noteholders. In addition, there are funds reserved for value-add capex to secure new leases.
"Today's outcome is unique in France," said Jonathan Agar, Senior Vice President at Hatfield Philips. "Contrary to the normal non-consensual outcome when borrowers file for safeguard protection, which is either a court imposition of a debtor-friendly safeguard plan or an uncontrolled liquidation, in this case the CMBS Lender emerged with full economic interest in the assets. On behalf of the lender, HPI procured the removal from safeguard of the property-owning entities, and used a pre-pack liquidation to gain control over them."
Consent of the Note Trustee regarding HPI's proposal had been obtained as required pursuant to the Primary Servicing Agreement.
About Hatfield Philips International Ltd.
Hatfield Philips International ("HPI"), together with LNR Europe, is a leading NPL and debt advisory firm with best-in-class loan servicing capabilities. From NPL underwriting to co-investing to helping lenders execute on debt strategies, HPI is uniquely positioned to deliver multiple layers of value to a wide range of debt market participants. HPI accomplishes this by leveraging a highly seasoned team of real estate finance, workout, debt servicing, and client service specialists. Founded in 1997 on the principles of trust, integrity and providing the highest levels of customer service, HPI has the experience and capabilities to partner with clients to achieve their business and investment objectives. HPI is a subsidiary of LNR Property, a United States-based real estate investment, finance, management and development firm, which was acquired by Starwood Property Trust in April 2013. For more information please visit us at http://www.hatfieldphilips.com/.
Starwood Property Trust
SOURCE Hatfield Philips International