Fairfield Residential Files Chap 11 -
By Daniel at 14 December, 2009, 10:24 am
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“Fairfield filed for Chapter 11 late Sunday afternoon in Delaware and listed assets of $958 million and liabilities of $834.9 million as of the end of September. In addition, Fairfield noted that many of its properties are worth less than their loan balances. That contributed toward putting Fairfield in violation of certain financial covenants with two main lenders: Wells Fargo & Co.’s Wachovia and Capmark Financial Group Inc., the big real-estate lender that recently filed for bankruptcy itself.
In addition to development, Fairfield also buys and sells real-estate assets, including the Milano in Torrance, Calif., and a sale of the Castlegate apartment complex in the Washington, D.C., suburbs. It acquired $7 billion of apartments over the past seven years, and has sold more than $12 billion of real estate since 1997.
The bankruptcy is also a blow to the California State Teacher’s Retirement System and a subsidiary of Mitsubishi Corp., both of which invested in Fairfield over the years.
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Fairfield’s bankruptcy underscores the persistent difficulties faced by private companies trying to raise capital even while broader debt and equity markets have eased for publicly-traded property owners and operators. Public real-estate investment trusts so far this year have raised more than $35 billion by selling shares and bonds.”
http://online.wsj.com/article/SB10001424052748704121504574594474244928190.html
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