LONDON, Oct 30 (Reuters) - Cairn Financial has been appointed adviser to a securitisation linked to insolvent German retailer Arcandor, with bondholders -- owed more than 1 billion euros -- now braced for a round of restructuring talks.
Cairn said late on Thursday it is advising the equity sponsors of the 2006 securitisation, including Whitehall Funds and Deutsche Bank unit RREEF, on proposed changes to the transaction.
The adviser asked bondholders to identify themselves 'should they wish to participate in informal discussions with Cairn regarding the proposed (bond) amendments'.
Further details of the amendments have not been disclosed.
The 1.2 billion euro ($1.78 billion) debt is backed by income by about 100 properties.
The purpose of the amendments is to manage the securitisation, issued by Fleet Street Finance Two, following Arcandor's insolvency in June. The borrower has not missed any debt payments and is in compliance with its covenants, Cairn added.
Arcandor's insolvency led rating agency Standard & Poor's to downgrade the ratings of four of the securitisation's bonds by three notches in July. It said the retailer's insolvency would depress the value of the real estate portfolio and reduce income into the securitisation.
S&P said the value of the properties without a tenant is 1.5 billion euros, but this could fall because of Germany's weak economy.
Last week Arcandor's administrator said it had decided to liquidate its mail order arm, Quelle Deutschland, after failing to find a new investor for the business.
(Reporting by Tom Freke; editing by John Stonestreet)
($1=.6746 Euro) Keywords: CAIRN/SECURITISATION (tom.freke@thomsonreuters.com; +44 (0)207 542 4036; Reuters Messaging: tom.freke.thomsonreuters.com@reuters.net) 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.
Cairn said late on Thursday it is advising the equity sponsors of the 2006 securitisation, including Whitehall Funds and Deutsche Bank unit RREEF, on proposed changes to the transaction.
The adviser asked bondholders to identify themselves 'should they wish to participate in informal discussions with Cairn regarding the proposed (bond) amendments'.
Further details of the amendments have not been disclosed.
The 1.2 billion euro ($1.78 billion) debt is backed by income by about 100 properties.
The purpose of the amendments is to manage the securitisation, issued by Fleet Street Finance Two, following Arcandor's insolvency in June. The borrower has not missed any debt payments and is in compliance with its covenants, Cairn added.
Arcandor's insolvency led rating agency Standard & Poor's to downgrade the ratings of four of the securitisation's bonds by three notches in July. It said the retailer's insolvency would depress the value of the real estate portfolio and reduce income into the securitisation.
S&P said the value of the properties without a tenant is 1.5 billion euros, but this could fall because of Germany's weak economy.
Last week Arcandor's administrator said it had decided to liquidate its mail order arm, Quelle Deutschland, after failing to find a new investor for the business.
(Reporting by Tom Freke; editing by John Stonestreet)
($1=.6746 Euro) Keywords: CAIRN/SECURITISATION (tom.freke@thomsonreuters.com; +44 (0)207 542 4036; Reuters Messaging: tom.freke.thomsonreuters.com@reuters.net) 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.
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