Sunday, 28 August 2016
Last updated 1 day ago
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.