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The owner of a 1.3 million-square-foot New York office tower filed for protection under the Bankruptcy Code last week, listing nearly half a billion dollars of debt and only half that much in assets.
The result of negotiations with a bank group led by Swiss Bank Corp., it appears to be the largest "prepackaged" single-asset real estate bankruptcy ever filed.
In a prepackaged bankruptcy, a company obtains approval for a reorganization plan when it files for Chapter 11.
The Stage Is Set
The filing sets the stage for a similar restructuring by the same developer of a nearby project that was financed by a group led by Citicorp, sources said. The petition by 1585 Broadway Associates, a partnership controlled by Solomon Equities, lists $482...