First European CMBS Deal to be Extended
February 26, 2010
London, UK (February 26, 2010) - Paul, Hastings, Janofsky, and Walker (Europe) LLP is advising the Servicer, Capita Asset Services (Ireland) Limited and Capita Asset Services (UK) Limited, in the Fleet Street Finance Two PLC CMBS transaction, which following extraordinary resolutions passed at a meeting of Noteholders on 24 February 2010, will be the first European CMBS deal to extend the maturity date on the CMBS notes.
The transaction involves the restructuring of a €1.2 billion commercial mortgage loan secured by over one hundred retail assets located throughout Germany and leased to the Karstadt department store. Karstadt was put into administration along with its parent, Arcandor in June 2009.
A meeting of the holders of Notes issued by Fleet Street Finance Two PLC took place on 24 February 2010 at which extraordinary resolutions were passed by each class of the Notes approving the restructuring proposals. The restructuring proposals included an extension of the maturity date of the underlying loan secured by the department stores in Germany from July 2010 to 2014. In addition, the maturity date of the CMBS was extended by three years to 2017. The positive Noteholder vote is the first time noteholders have agreed to an extension of the legal final maturity of the notes in a European CMBS transaction.
The Paul Hastings team is being led by partners Charles Roberts and Karl Clowry in London, and Dr Christopher Wolff and Edouard Lange in Frankfurt, assisted by associates Leon Pacini, Miles Flynn, Jennie Dorsaint, Stefan Gehrlein and Christian Halasz.
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