. "Servicers do drag their feet with them a lot more because they aren't sure what to do."
(unless there is a backroom deal to be had)
Among hotel loans being worked out is $1.44 billion in financing backed by 355 La Quinta Inns & Suites owned by a unit of New York-based Blackstone Group LP.
...
"Special servicing is a routine precondition to requesting an extension and we have done this in over a dozen other similar situations."
(translation, "we've defaulted on over a dozen other failed loans where we are the borrower)
"Having some type of extension on an existing loan already in place, rather than a foreclosure or REO situation, is more likely in hospitality than in other commercial sectors," Stacey Berger, executive vice president at Midland Loan Services Inc., said in October. REO refers to real estate owned by lenders following a foreclosure.
h/t Anon
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2 comments:
"La Quinta is performing strongly and has over seven times cash flow to interest expense” Wow! Cash flow is a fantastic 7 times LIBOR flat?? They're waiting in line to refi that loan! A significant principal writedown is coming whether by foreclosure or modification. See Extended Stay.
correction: 7 times a blended libor + .58
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