News & Events
market
intelligence
briefing
August 20, 2017
Commercial Banking
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Aug 17 -
Bank of America and Deutsche Bank agreed to pay a combined $65.5 million to settle allegations of rigging the government agency bond market. BofA will reportedly pay $17 million, with Deutsche Bank responsible for the remaining $48.5 million. The litigation was launched by a group of investors including the Iron Workers Pension Plan of Western Pennsylvania, KBC Asset Management and the Sheet Metal Workers Pension Plan of Northern California, who accused the banks of communicating by phone, chatrooms and instant messaging to share pricing data and allowing traders to coordinate strategies to boost profit.
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Aug 17 -
A group of Banco Popular bondholders, which include Anchorage Capital, Algebris and Ronit Capital, filed challenges to European regulatory decisions that put the bank in resolution, leading to its acquisition by Santander for $1. The group is seeking to annul the Single Resolution Board’s, as well as to overturn the European Commission’s endorsement of that decision. They claim comments from SRB chair Elke Konig on May 23 and an EU official comment made of May 31 led to a run on the bank and its resolution. Santander has offered to pay $1.1 billion in compensation to retail bondholders, but the group says it isn’t seeking compensation under this particular claim. However, further action is anticipated if the challenges aren’t overturned.
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Aug 17 -
KeyBank has formed a strategic partnership with payment solutions provider Billtrust for the launch of KeyTotal AR. The plat form will be powered by BillTrust’s Quantum Payment Cycle Management solution, accelerating cash flow by automating invoice delivery, as well as payment and cash application. KeyBank is the first commercial bank in the U.S. to invest in and partner with BillTrust.
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Real Estate Finance
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Aug 16 -
Shareholders of both FelCor Lodging Trust and RLJ Lodging Trust approved a merger deal that establishes a $7-billion hospitality REIT. At the special meeting of RLJ shareholders, approximately 78% of the votes cast were voted in favor of the proposal related to the issuance of RLJ common shares. At the special meeting of FelCor stockholders, approximately 81% of the outstanding shares of FelCor common stock were voted, with approximately 99% of the votes cast in favor of the merger. Under the terms of agreement, FelCor would become a subsidiary of RLJ and will be delisted from trading on Aug. 31.
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Aug 17 -
Related Companies refinanced its unsold condominium units at 520 West 28th Street in New York. KKR Real Estate Finance Trust extended $162 million in debt backed by 30 unsold apartments and the building's retail space.
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Aug 17 -
Est4te Four obtained $77.8 million in financing from Ladder capital to purchase a 150,000-square foot office condominium located at 50 Varick Street in New York. The financing includes a $26.5-million mortgage and consolidates the remaining $51.3 million principal in previous debt. Est4te purchased the asset from NY REIT for $135 million.
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Commercial Bankruptcy
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Aug 14 -
Payless Shoes emerged from bankruptcy after eliminating more than $435 million in debt during the Chapter 11 process. The company is now seeking a new CEO after Paul Jones stepped down from the position. Until a successor can be found, the company will be run by a committee including new chairman Martin Wade III, CFO Michael Schwindle and COO Mike Vitelli.
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Aug 9 -
Algae-based materials firm TerraVia has filed for bankruptcy, with plans to auction the business. Food ingredients manufacturer Corbion is the only bidder to come forward so far, making an offer of $20 million for the company and plans to incorporate TerraVia’s fatty acids and algal proteins into its own product line. TerraVia is reportedly more than $170 million in debt and its debtors have agreed to fund operations during the bankruptcy process.
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Aug 8 -
Telemarketing company Suarez Corporation filed for bankruptcy protection and cited its owner’s conviction for witness tampering as the primary reason for the filing. Ben Suarez was convicted of witness tampering charges related to a campaign finance investigation and spent just over a year in prison before his release in 2016. According to court papers, the company owes $10 million to $50 million and has $500,000 to $1 million in assets.
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