Farallon To Restructure Mobile-Home Debt In Danger Of Default

Jun 30 2010 | 12:11pm ET

Farallon Capital Management is restructuring a $1.5 billion securitized loan that one credit ratings agency said it in danger of “imminent default.”

American Residential Communities, the trailer-park operator that the San Francisco-based hedge fund bought three years ago, denied that the loan was in default, and said the loan’s placement with a special servicer was part of a restructuring.

ARC and Farallon, which paid $1.8 billion along with Helix Funds in 2007 for the company, are “being proactive with respect to the debt,” a spokeswoman for ARC told The Wall Street Journal.

Fitch Ratings cited KeyBank, which oversees the loan, in declaring its danger for default on Monday. Farallon put up three-quarters of the capital for the ARC deal.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of