White Tower gets votes needed to stop paying class E notes interest

By Susanna Moon

Chicago, Aug. 19 - White Tower 2006-3 plc said that holders of its £68 million of class E commercial mortgage-backed floating-rate notes due 2012 agreed to allow interest on the notes to stop accruing from July 25.

The vote passed at a noteholders' meeting, which was adjourned to Aug. 19 due to lack of a quorum on Aug. 5.

At the 5:30 a.m. ET adjourned meeting, a quorum of two or more persons holding at least one-third of the notes was required, according to a previous press release. To be passed, the extraordinary resolution needed approval by at least 75% of the people voting at the meeting.

White Tower previously said that holders voted for an extraordinary resolution at a meeting on Aug. 4 to delist the notes from the Irish Stock Exchange, to have the ratings for the notes withdrawn and to exercise its right under the liquidity facility agreement to cancel the undrawn part of its liquidity facility commitment in whole.

The trust deed for the notes also covers £678.5 million of class A commercial mortgage-backed floating-rate notes due 2012, £171.5 million of class B commercial mortgage-backed floating-rate notes due 2012, £116 million of class C commercial mortgage-backed floating-rate notes and £116 million of class D commercial mortgage-backed floating-rate notes due 2012.

On June 2, White Tower gave notice of the completion of the sale of the Aviva property.

White Tower had planned to redeem the class B, C and D notes in full on the July 25 interest payment date and to partially redeem the class E notes with further distributions once the costs from the sale and the unwinding of the transaction have been finalized.

The company said any amount payable to the holders of the class E notes will be limited to the undistributed sale proceeds. As a result, if this money is used to pay interest, it will reduce the amount of principal available to be repaid to the holders.

On July 20, the company announced that it would withhold £3 million of the class E notes at the issuer level on the July 25 interest payment date.

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