In light of the success of the performance of the Mapeley Beta Loan, a substantial group of noteholders holding notes in the DECO 11 CMBS has requested that FI Real Estate Management (FIREM) and the borrower implement a restructuring proposal in connection with the Mapeley Gamma Loan.
The borrower has agreed to commit to an injection of capital (fully funded and available from the commencement of the restructuring) to finance certain proposed capital expenditure requirements in respect of the Mapeley Gamma portfolio.
The investment of capital expenditure constitutes the initial element of FIREM’s proposed active asset management programme which will include deploying such investment for the purpose of re-gearing leases, undertaking refurbishments with a view to re-let as well as undertaking strategic disposals.
The repayment of the capital injection will be subordinated to the current valuation of the portfolio plus a premium.
For the duration of the restructuring period, the Mapeley Gamma Portfolio Loan will remain outstanding in full, no principal amounts will be written down, and no interest obligation of the Mapeley Gamma obligors to the Issuer will be reduced in any way.
This means that the underlying CMBS notes which were issued by the Issuer to finance its acquisition of the Mapeley Gamma Loan will not be subject to any amendment or modification in terms of economics or otherwise.
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