The decision to move to administration was taken by Hatfield Philips International following a failure to agree an acceptable restructuring of the loan with the borrower.
Hatfield Philips, Europe’s largest independent Primary and Special Servicer, has been striving to find a consensual way forward with the borrowers since the loan matured in April. Following a comprehensive due diligence process, a detailed proposal was put forward to the borrowers which allowed continued ownership in exchange for partial paydown and a deleveraging of the lenders positions.
Philip Byun, Vice President, Hatfield Philips, said:
“The decision to file for administration was not taken lightly. After several months of negotiation, a consensual way forward could not be achieved. Our goal is to maximise the recoveries for all lenders and in cooperation with our advisor (Cooke & Powell LLP) and joint administrator (Mark Batten and Stephen le Page of PricewaterhouseCoopers CI LLP), we will now be implementing our strategy which will include driving substantial business plans for the five buildings and exploring the prevailing strong interest in these assets with third parties.”
