Solutus self-sale in question as CMBS workout turns ugly

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By Owen Sanderson
03 Mar 2021

Noteholders in Deco 11 UK Conduit 3, a defaulted UK CMBS issued in 2006, have questioned the deal's dénouement, which saw special servicer Solutus, responsible for maximising their recoveries, sell the properties backing the deal to another company controlled by its owner, Lancashire property tycoon Tim Knowles.

The servicer said the sale price was at a premium to market value and in line with market practice, but noteholders intend “to ensure that these matters are investigated fully and that noteholders suffer no material losses as a result of them”, setting up a fight over the ...

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