Hatfield Philips announced that it has enforced the EUR 159 mln Mangusta loan following the transfer by the borrower of its interest in the loan from German domiciled entities to an Austrian domiciled entity.
Hatfield Philips announced that it has enforced the EUR 159 mln Mangusta loan following the transfer by the borrower of its interest in the loan from German domiciled entities to an Austrian domiciled entity.
The Mangusta loan is the second largest loan in the EUR 723.3 mln Titan Europe 2006-1 PLC portfolio, and is secured on 13 properties providing office, retail, residential and hotel accommodation across Germany. Tenants include major retailers, hotel chains and German government departments.
Hatfield Philips said it has also successfully brought German insolvency proceedings against the relevant Austrian company. In the coming weeks Hatfield Philips will seek to reach an agreement regarding the administration and management of the assets of the Austrian company and a possible disposal strategy in respect of the underlying properties. It is also investigating what further legal steps may be taken regarding unfulfilled obligations of the sponsor.
Christian Daumann, managing director, Hatfield Philips: 'Domiciliary of borrowers’ interest is critically important when looking at the actions that we can take on behalf of lenders. Jurisdictions across Europe can have significantly different legal procedures which can fundamentally impact on the ability to restructure or enforce on loans and therefore we needed to take prompt and decisive action when the loan was accelerated and we found out that the borrowers had sought to move the loan interests from Germany to Austria.'
