LONDON, Dec. 30, 2014 /PRNewswire/ -- Hatfield Philips International ("HPI"), a leading NPL and debt advisory firm with best-in-class loan servicing capabilities, today announced that it negotiated the successful sale of the Netherlands' renowned five-star Kurhaus Hotel (the "Hotel") in Scheveningen, The Hague to Amrath Hotels (Amrath) for a gross purchase price of €32.6 million. Insolvency related costs in the amount of €2.4 million will be paid out to secured and unsecured creditors in order of the seniority of their claims, and the balance, less transaction costs, will be paid out to Titan Europe 2006-3 plc noteholders. HPI worked in cooperation with the Borrower and Bankruptcy Trustee to facilitate the sale, which represents a 35.6 percent premium over the last reported market value to noteholders.
"The sale of the Kurhaus Hotel is another demonstration of our ability to navigate a complex process and work diligently to ensure a positive outcome for noteholders," said Blair Lewis, Chief Executive Officer of HPI. "In addition, by completing the sale, we were able to preserve one of the Netherlands' prominent landmarks and in parallel support a continuation of the hotel's operations with minimal interruptions."
The Hotel, which is one of the most iconic and recognisable hotels in the Netherlands, served as collateral for the Kurhaus Loan that was securitized in Titan Europe 2006-3 plc. After the Borrower defaulted on interest and amortization payments in July 2012, the Hotel was transferred to special servicing. Shortly after, HPI worked with the Borrower and the Sponsor to implement a consensual sales strategy and entered into an exclusivity agreement with Amrath in mid-2014. However, due to its distressed financial condition, the Hotel's operator recently filed for bankruptcy. This development forced HPI to work quickly and diligently with the Borrower and Bankruptcy Trustee to execute the sale, which prevented the Hotel from closing and transferred ownership back to a Dutch company. In doing so, HPI was able to maximise proceeds to noteholders, creating a favorable outcome for all parties involved.
The Hotel has been rebranded the Grand Hotel Amrath Kurhaus The Hague.
The sales process was led by HVS Hodges Ward Elliott, with financial, tax and structuring advice provided by PricewaterhouseCoopers. Freshfields Bruckhaus Deringer served as HPI's legal advisor on the transaction while Van Doorne represented the Borrower.
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