There's been important news today regarding the Tenants Association going directly to the debt-holders on PCVST and bypassing CWCapital, the special server that is currently in charge of this place. Unfortunately, I'm incredibly busy at this time of the year and can't devote much of my own commentary on this issue, aside from stating that I fully support this move. I urge interested readers to find out more at the TA Facebook page:
http://www.facebook.com/groups/358760671689/
Crain's has a summary:
http://www.crainsnewyork.com/article/20121016/REAL_ESTATE/121019928#ixzz29TKOj1El
9 comments:
But Dan said (at the street party they held in announcement) that CW has stated they are very interested in discussing a tenant led buyout.
REMEMBER EVERYONE? REMEMBER they said that??????
Wouldn't get too overheated. This brings some welcomed attention. Results remain to be seen.
Here is a good idea at work, much over due.
CW is in the simple business of stalling...cut them out.
Let the senior bondholders know we are ready to either 1) come to an agreement or 2) continue our litigation against the illegal actions of their management companies for years.
Let's stop pussy-footing around and be sure that we fully leverage the advantages we have as buyers and that some attempt at recouping our losses and quality of life that TS stole away with their policies.
Here's the problem. Two major issues remain in the Roberts litigation. These issues have not yet been ruled upon by the Court of Appeals, New York's highest court. The first issue is: Is Roberts retroactive? The second issue is: If Roberts IS retroactive, what is the proper method of computing the rents? Landlords and tenants disagree wildly on the correct formula. So, until these issues are resolved by the Court of Appeals, the rent roll cannot be determined. And, without the rent roll determined, you can't properly value the property. And, without an accurate valuation, CW ain't gona sell. The TA can scream until they are blue in the face, but CW is just making some reasonable business decisions by waiting to sell.
Fannie & Freddie are under the oversight of the FHFA headed by Ed DiMarco, notedly conservative decision-maker. All CW has to say to Ed is...we have serious exposure if we sell before Roberts is settled, and we can make an awful lot more money for Fannie & Freddie if we hold off for as long as possible. That's it. So much for the effort. End of sorry. The importan part is at least someone is doing something to draw media & public attention.
CW has a fiduciary duty to the bondholders not to anyone else.All they have to tell the bondholders is that they are acting in their best interests and unless someone can prove that their claim is totally specious, CW has no legal liability for not dealing with the TA and , more importantly, the bondholders are very likely to agree with CW's course of action.
@ anon 1:29 PM
What a load of rubbish.
The housing market is not bouncing back anytime soon, and CW are being paid to manage the property and are being paid a fee to be the special servicer on the $3Billion debt, by the bond holders.
The sooner the bond holders are paid back there $3Billion and stop paying all those fees to CW, the better for them.
Look, there are a lot of things that we don't know. The only thing we know for sure is that the senior bondholders are not going to recover more than 100% of their investment. Of course, that may include interest due to them that they have not been receiving due to a shortfall in revenues.
I suppose it is possible that the TA/Brookfield have not offered them enough to cover that principal amount plus any shortfall. More likely, CW has an ulterior motive which involves some kind of self enrichment.
These are big, greedy boys with big greedy plans. They follow in the greedy footsteps of Rose and Tishman and Met Life. Why would anyone expect them to behave any differently than their predecessors? They don't care about you, me, the TA or Dandy Dan. If they can make a mere $100 million by dragging their feet--even if it costs them $25 million in legal fees--they're going to do it. And they are.
Stop wringing your hands over it and just wait them out. In the end, it may backfire! After all, it wouldn't be the first time...
Why did you put Rose in that list? They didn't ever buy the place or even try to buy the place. You are losing credibility when you just lump everyone together.
Post a Comment