firesales,mezzanine lending,gfc perspectives, page-2

Let me get this straight. So the project owed $32M+$240M+$70M = $342M, wasn't finished, was valued at $640M and 60% of the stock was yet to be sold.

Fortress paid $70M+$32M+$20M = $122M for effectively, the management rights/obligations of the building and the remaining, unfinished 60% of the stock. Say the management rights are worth $22M then 100% of the stock would be worth $167M. I.e. a write down of 76% if the building was finished. But it's not.

But if costs to finish the building is $100M the write down is 58%; finishing costs of $200M equates to a write down of 43%; finishing costs of $300M equates to a write down of 23%.

Paints a different picture doesn't it. Or am I wrong?

Feels like Fortress was trying to do the same thing with OCV. Wiggling its way in between the senior debt and junior debt. Forcing a play of divide and conquer between the two. Paying out the senior debt at the expense of the junior debt
and walking away with the assets.

Maybe Peacock and King were onto them and were bowling Warnies; see para [218] of the 31July decision "But I still don't know how they paid us the $100MM in Nov".

Very interesting.