The largest tenant of Busse Corporate Center recently declared bankruptcy, leaving the building 38% inhabited and significantly overleveraged. In a suburban Chicago office market that is depressed, Marisa Sanchez, the leasing representative, needs to negotiate lease proposals with three prospective renters to attempt to fill the vacant space.
Meanwhile, the building's owner, Collins Properties, must determine with its equity partner whether to continue financing the building's losses while attempting to rent the empty space, restructure the debt, or default on the loan and turn the building around to its lenders. The selection is made more complex by Collins' use of a Commercial Mortgage Backed Security (CMBS) Loan, which includes multiple parties, ambiguous relationships, and bifurcated obligations.
PUBLICATION DATE: June 18, 2009 PRODUCT #: 209154-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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