Developer Macklowe receives default notice: report

NEW YORK (Reuters) - New York developer Harry Macklowe on Monday was served with a notice of default related to debt on four properties, a move that could spur actions that lead to a foreclosure action, according to a report in the online edition of the Wall Street Journal.

The report, citing two people familiar with the matter, said a special servicer sent the notice of default after no agreement could be reached by lenders to give Macklowe an extension on his $3.1 billion in debt on the four properties.

Macklowe has been negotiating with lenders over a total of $7 billion of debt on seven Manhattan buildings, including the four properties, the report said. It said the possibility of a foreclosure action had increased because negotiations on the debt have bogged down.

Macklowe had already worked out an agreement with his primary lender, Deutsche Bank, the Journal said.

But Vornado Realty Trust VNO.N , a real estate investment trust based in New York which holds some of the subordinate debt, has opposed a proposed debt-workout plan, the report said, citing the sources.

Representatives of neither Macklowe nor Vornado could immediately be reached for comment. A spokesman for Deutsche Bank declined to comment.

(Reporting by Ransdell Pierson; editing by Carol Bishopric)