Winthrop Realty may buy back series D preferreds, 7¾% notes related to asset liquidation

By Susanna Moon

Chicago, April 29 - Winthrop Realty Trust said it may repurchase its series D preferred shares and its 7¾% senior notes due 2022 in connection with a plan of liquidation.

The company's board of trustees unanimously adopted a plan of liquidation, subject to shareholder approval, which would provide for an orderly liquidation of Winthrop's assets, according to a company press release.

The purchases of the preferreds and the 7¾% notes will be executed periodically as market and business conditions warrant on the open market, in negotiated or block trades, or under a 10b5-1 plan, which would permit shares to be repurchased when Winthrop might otherwise be precluded from doing so under insider trading laws, the release noted.

If the plan of liquidation is approved, dividends on Winthrop's common shares will be suspended until the $120.5 million liquidation preference on Winthrop's series D preferreds is satisfied, the company said.

In addition, Winthrop said it plans to satisfy, or provide reserves to satisfy, its 7¾% notes that have an outstanding balance of $86.25 million before resumption of dividends on its common shares.

Boston-based Winthrop is a real estate investment trust.

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