LONDON, Aug. 7, 2014 /PRNewswire/ -- Hatfield Philips International ("HPI"), Europe's largest independent commercial real estate loan servicing firm, today announced that it successfully implemented a workout strategy and restructuring of the €225 million Apple Whole Loan (the "Loan") in the Talisman-6 Finance P.L.C CMBS. Originated in 2005 by ABN AMRO, the Loan was granted to a group of German companies (the "Borrowers") for the acquisition of commercial real estate properties throughout Germany.
"This intricate restructuring is a prime example of our ability to leverage our institutional knowledge and experience to overcome highly complex tax and structural circumstances to devise a creative workout solution that maximizes returns for noteholders," said Jonathan Agar, Senior Vice President at Hatfield Philips. "We are incredibly pleased with how the process played out and appreciate the cooperation of the different parties involved to ensure a successful resolution."
As part of the complex restructuring, HPI negotiated an arrangement whereby the parent companies of the Borrowers consensually agreed to transfer their shares in the Borrowers to two newly-founded, independent Irish holding companies. In conjunction with the transfer of shares, the Borrower's debt was restructured for insolvency purposes by way of certain debt assumptions of the new Irish holding companies. HPI, which will continue to service the Loan, has taken the necessary steps to ensure that the restructuring has no adverse tax consequences.
Furthermore, HPI secured a final settlement of certain intercompany loans between the Borrowers and their parent companies, which were not part of the original security package. The proceeds from the settlement significantly exceed the cost of restructuring. HPI also had the parent companies provide for a tax indemnity letter to mitigate certain possible tax risks related to the origination and extension of the intercompany loans.
"Engineering this creative workout solution represents yet another example of our ability to achieve superior results and adds to the growing list of special servicing successes we continue to experience," said Blair Lewis, Chief Executive Officer of Hatfield Philips.
The share transfer and the relevant debt assumptions are supported and backed by a restructuring opinion (Sanierungsgutachten). Clifford Chance advised HPI on the restructuring.
About Hatfield Philips International Ltd.
Hatfield Philips International is one of Europe's largest primary and special servicers with over £15 billion assets under management. Since its inception in 1997, the Company has established itself as a full-service loan servicer, offering a complete suite of products and services to a wide range of clients that issue, own or invest in commercial mortgage backed securities and loan portfolios. Hatfield Philips is a subsidiary of LNR Property, a United States-based real estate investment, finance, management and development firm, which was acquired by Starwood Property Trust (NYSE: STWD) in April 2013.
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