The borrowers of around £1bn of securitised debt secured by Propinvest’s Gemini portfolio have appointed Lazard & Co as an adviser.
The finance specialist has been appointed to assist them “in developing a restructuring proposal for the loan” which is secured against the 32 secondary assets, according to a Stock Exchange announcement released today.
Loan servicer CBRELS said that it is in active discussions with the borrowers and their advisors with a view to ensuring that any restructuring proposal fulfils the objective of the servicing agreement of maximising recovery to investors in the debt.
It said it has delayed the production of its latest strategy review until “there is more clarity on the outcome of these discussions”.
It also added that as previously advised, DNB Bank ASA – formerly known as DnB Nor Bank ASA – had applied for an administration order in the Guernsey courts for Propinvest Group Limited.
It said: “This company is not an obligor, but it is within the wider group controlled by the loan sponsor.
“Similarly, we are informed that there is no direct ownership relationship between PGL and the property manager.
“The Royal Court of Guernsey appointed administrators over this company on 4 November 2011.
“We are informed that an appeal will be lodged against this decision and the sponsor has also lodged an application to have the effect of the order stayed pending the hearing of the appeal.
“We have not been informed of the dates upon which either of these applications will be heard and in the meantime the administrators appointed by the Royal Court in Guernsey have applied to the high court in London to have their appointment recognised in the UK.”
Bridget.oconnell@estatesgazette.com
