Gramercy Settles Loan Obligations

Gramercy Capital Corp., New York, has entered into an amendment and compromise agreement with KeyBank NA, the administrative agent for a group of lenders, to settle and satisfy at a discount pre-existing loan obligations of approximately $174.6 million.Gramercy made a cash payment of $45 million and agreed to pay over time an additional $15 million from a portion of free cash flow generated by its collateralized debt obligations. Furthermore, Gramercy satisfied all of its obligations under a $9.5 million master repurchase facility with JPMorgan Chase Bank N.A. by making a cash payment of approximately $1.9 million to the bank. JPMorgan assumed full ownership and control of, and responsibility for, the related loan asset. Gramercy and its advisors continue to negotiate amendments of its credit facility with Wachovia Bank NA, and its master repurchase facility with an affiliate of Goldman, Sachs & Co.