Island Capital to negotiate restructuring for Centerline Holding

By Lisa Kerner

Charlotte, N.C., July 6 - Centerline Holding Co. authorized Island C-III Holdings LLC, an affiliate of Island Capital Group LLC, to negotiate a restructuring and settlement of the company's obligations, liabilities and claims with creditors and other claimants, according to a form 8-K filed with the Securities and Exchange Commission on Monday.

According to Centerline, it will continue its evaluation of business and strategic alternatives with the assistance of Rothschild Inc. while Island negotiates with the creditors.

Centerline said Island asked for the right to negotiate with the creditors with a view to potentially submitting a proposal to merge with Centerline or acquire substantially all of its assets.

Island's authorization agreement with Centerline requires Island to submit a definitive proposal that is agreed to in principle by the parties by Sept. 14.

The agreement provides for a termination fee payable to Island if definitive documentation for a transaction is not entered into with Island on or before Oct. 31 or if Centerline uses any settlement and restructuring agreements within one year of the termination of the agreement.

According to the filing, the term of the authorization agreement expires on Oct. 5.

Island has not yet submitted a proposal to Centerline and there is no assurance that a proposal will be submitted.

Centerline is a New York-based investment holding firm.

Island is a private real estate merchant banking firm headed by Andrew L. Farkas, the founder, chairman and chief executive officer of Insignia Financial Group, Inc.

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