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Willy Weasel

Another Landlord Defaults On Its Debt

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From Bloomberg:

Billionaire Halabi’s Companies Default on $1.9 Billion of Debt

Billionaire property investor Simon Halabi’s real estate companies defaulted on 1.15 billion pounds ($1.9 billion) of bonds backed by nine London office buildings as the recession cut the value of the properties by about 50 percent.

The properties, including JPMorgan Chase & Co.’s offices at 125 London Wall and 60 Victoria Embankment, are now worth less than the value of the loans that back them, loan manager Hatfield Philips International Ltd. said in a statement today.

The buildings were valued at 929 million pounds as of June 8, down from 1.83 billion pounds in October 2006, Hatfield Philips said. Halabi’s companies borrowed against the buildings in 2006. The debt, which was packaged into bonds, expires in October. It’s the U.K.’s largest mortgage bond issue maturing this year, according to Bloomberg data.

Halabi’s companies have 10 business days to make good on the default, according to the statement. Kamlesh Bathia, finance director at Halabi’s investment company, Buckingham Securities Holdings Plc, declined to comment.

Fitch Ratings Ltd. downgraded the bonds on June 5, citing the prospect that JPMorgan would relocate its offices from Halabi’s buildings. Fitch also said the notes were unlikely to be repaid when they expire.

White Tower 2006-3 Plc issued the commercial mortgage- backed securities.

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Anyone got any news on AMSPROP?

Purely for shad reasons of course. It would be fitting if Gordon's business Tsar went TU.

I've enquired of the FT but had no response.

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