NEW YORK, Oct 2 (Reuters) - A group of investors including Starwood Capital Group, Wilbur Ross and TPG is the likely winner of an auction of assets of failed Corus Bank, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The Federal Deposit Insurance Corp (FDIC) is running the auction of Corus' condominium loans and other assets, which is being watched for its potential impact on the commercial real estate market.
The assets have a face value of roughly $5 billion, but the winning bid is expected to be much lower than that, according to the report.
Long controlled by the Glickman family, Chicago-based Corus Bank crumbled under the pressure of bad loans on commercial real estate and condominium developments in Arizona, southern California, southern Florida and Nevada.
On Sept. 11, the FDIC seized the bank, a unit of Corus Bankshares, and sold its deposits to MB Financial Inc , leaving the bulk of its assets to be sold later in a private placement.
Starwood, Ross, TPG and an FDIC spokesman declined to comment.
(Reporting by Michael Erman; Editing by Richard Chang) Keywords: CORUS/ (Reuters Messaging: michael.erman.reuters.com@reuters.net; +1 646 223 6021) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Federal Deposit Insurance Corp (FDIC) is running the auction of Corus' condominium loans and other assets, which is being watched for its potential impact on the commercial real estate market.
The assets have a face value of roughly $5 billion, but the winning bid is expected to be much lower than that, according to the report.
Long controlled by the Glickman family, Chicago-based Corus Bank crumbled under the pressure of bad loans on commercial real estate and condominium developments in Arizona, southern California, southern Florida and Nevada.
On Sept. 11, the FDIC seized the bank, a unit of Corus Bankshares, and sold its deposits to MB Financial Inc , leaving the bulk of its assets to be sold later in a private placement.
Starwood, Ross, TPG and an FDIC spokesman declined to comment.
(Reporting by Michael Erman; Editing by Richard Chang) Keywords: CORUS/ (Reuters Messaging: michael.erman.reuters.com@reuters.net; +1 646 223 6021) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
