Cerberus Capital Management LP, the private-equity firm led by Stephen Feinberg, agreed to buy the assets of insolvent German residential real estate investor Speymill Deutsche Immobilien Co. after restructuring 985 million euros ($1.26 billion) of distressed bank loans.
Speymill Deutsche received new capital in the form of subordinated debt and equity that will be used mainly to pay down debt and “make improvements to the assets,” New York- based Cerberus said today in a statement.
“The banks benefit from this transaction by having a large portfolio of non-performing loans converted to performing loans, while stakeholders benefit from Cerberus injecting new capital for improvements and leading the execution of a turn-around of the assets,” Lee Millstein, senior managing director at Cerberus, said in the statement.
NIBC Bank NV, HSH Nordbank AG and Norddeutsche Landesbank led lenders of Isle of Man-based Speymill, according to the statement.
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