Paralysis afflicts CMBS as bondholders wrangle with servicers and each other
Dozens of bondholder meetings have been called in recent weeks to address covenant breaches, swap counterparty replacement mandates and other issues. But the divergent interests of senior bondholders, junior bondholders and B-note lenders are paralysing negotiations and even compromising servicers, say investors and analysts.
REC Plantation Place, a £435m single property CMBS put together by NM Rothschild and the first to breach its loan-to-value covenants in early 2008, is convening another informal bondholder meeting next week. But there is little sign of any resolution to the deals problems.
The announcement of the
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