Gramercy Capital Corp., New York, has received a second extension on the maturity date, this time for two weeks, from the lenders on $791 million in loans, in order to negotiate an orderly transition of the properties securing the loans to those lenders.
There was no payment from Gramercy to the lenders for this extension. The new maturity date is April 29.
The first extension was for one month for a payment of $3.5 million. It expired on April 15, and its purpose was to give Gramercy time to negotiate a longer-term extension, modification, restructuring or refinancing.
The loans in question are a $241 million loan from Goldman Sachs Mortgage Co., Citicorp North America Inc., and SL Green Realty Corp.; and senior and junior mezzanine loans totaling $550 million from KBS Debt Holdings LLC, along with the three previously mentioned lenders.
Besides the transition of the Gramercy Realty division properties that were used as security, the parties are also negotiating a mutual release of claims and to allow Gramercy to continue the management of the properties once the lenders assume ownership.
If the parties are unable to come to an agreement, Gramercy said it believed the lenders would attempt to foreclose on the properties.
According to the company's third quarter 10-Q filing, the Goldman mortgage loan is collateralized by approximately 195 properties held by Gramercy. The mezzanine loans are collateralized by the equity interest in substantially all of the Gramercy Realty division, including its cash and cash equivalents totaling $32,428 of the company’s unrestricted cash as of Sept. 30, 2010.
