December 1, 2009 / 1:28 PM / 10 years ago

UPDATE 1-Anthracite Capital defaults on debt payments

* Says did not cure default on payments due Oct. 30

* Says has not received notices for acceleration of repayment

* Deutsche Bank may take collateral under debt agreement

Dec 1 (Reuters) - Anthracite Capital Inc AHR.N, an investor in commercial real estate assets, said it had defaulted on $1.6 million of interest payments on $79.25 million of senior notes.

The company said it did not cure within 30 days a default on the payments, which were due on Oct. 30.

Anthracite said it has not received written notice from creditors demanding accelerated repayment of the principal.

If acceleration were to occur, the company said it would not have sufficient liquid assets to pay the debt and, in the absence of additional capital or waivers, would be unable to fund its operations or continue its business.

The company said Deutsche Bank, whose loans to the company were made under a repurchase agreement, has informally indicated that it intends to exercise its remedy of taking the collateral under the repurchase agreement.

Under the agreement, Deutsche Bank must give at least five days’ notice before it can exercise this remedy. About $58 million principal amount of indebtedness remains outstanding under the agreement with Deutsche Bank, Anthracite said.

Anthracite said on Nov. 10 it had “substantial” doubts about its ability to continue as a going concern after breaching banking covenants and posting a fourth straight quarterly loss. Anthracite is externally managed by BlackRock Financial Management Inc, a unit of investment management firm BlackRock Inc (BLK.N).

Shares of the New York-based company were down 42 percent at 22 cents in premarket trade on the New York Stock Exchange on Tuesday. (Reporting by Jochelle Mendonca in Bangalore; Editing by Mike Miller) (jochelle.mendonca@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: jochelle.mendonca.reuters.com@reuters.net))

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below