| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers L > Headlines for Lehman Brothers Holdings Inc. > News item |
Lehman agrees to auction process for defaulted Broadway property
By Caroline Salls
Pittsburgh, May 26 - Lehman Brothers Holdings Inc. requested court approval of a settlement agreement under which a defaulted former office building property on Broadway will be sold for $161.5 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Lehman said 1107 Broadway, LLC bought the property in October 2007 with plans to turn the former office building into 165 luxury condominium units.
Although 1107 Broadway and its affiliates eventually drew a total of $228.34 million from the $343.4 million of mortgage loans from Lehman, the borrower was unable to implement its development plan and defaulted on the mortgage.
According to the release, 1107 Broadway has found a potential buyer for the property. The settlement calls for the building to be sold through an auction process.
Specifically, third party 1107 Broadway Owner LLC will serve as the stalking horse bidder for the property. The stalking horse bidder would pay $161.5 million for the property, plus transfer taxes and carry costs incurred by Lehman.
If the settlement is approved by June 17, the auction will be held on June 29. Interested bidders must make a $5 million deposit toward the purchase price.
The third-party bids must be for at least $164.5 million, plus payment of transfer taxes and carry costs. Subsequent bids at auction must be made in minimum increments of $250,000.
If 1107 Broadway Owner is not the high bidder at auction, it will receive a $2.5 million break-up fee to be paid from sale proceeds.
The hearing is scheduled for June 15.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.