Also This Week, Cancellations or Transfer from BearingPoint, BNC Mortgage, Drug Fair, Journal Register, Transmeridian Exploration
The Greenbrier Hotel Corp. (GHC), owner of The Greenbrier resort in White Sulphur Springs, WV, (thee best resort I've ever stayed at) filed for Chapter 11 protection in the Eastern District of Virginia in Richmond. The Greenbrier contains 721 rooms on 6,500 acres resort in southeastern West Virginia.
As part of the filing, GHC asked for approval of financing from its parent corporation, CSX Corp., to support the resort's ability to operate in the normal course in the near-term.
As part of the restructuring, GHC also agreed to sell the resort to Marriott Hotel Services Inc.
"A sale to Marriott would be a great outcome for everyone associated with The Greenbrier," said Michael Gordon, president and managing director of the resort.
The agreement with Marriott contemplates that CSX would provide $50 million, through an affiliate, to be used in the operation of the resort after completion of the sale. These funds would be paid over a two-year period following the closing of the transaction. In turn, Marriott would pay GHC between $60 million and $130 million within approximately seven years, with the actual amount depending on the timing of the payment and The Greenbrier's financial performance.
The transaction, which is not expected to be completed until later in the year, is contingent on the ability of The Greenbrier and its unions to negotiate labor contracts that are satisfactory to Marriott. It is also subject to a court-supervised auction process in which other qualified purchasers will have an opportunity to bid on the resort. Marriott would assume management responsibility for the resort as soon as the transaction is closed.
Drug Fair Files Bankruptcy, Walgreens to Keep Most Stores Open
By: Sasha M Pardy
Drug Fair Group, a New Jersey drug store operator, filed Chapter 11 and agreed to sell substantially all of the assets associated with 32 of its stores to Walgreens for an undisclosed amount.
Drug Fair intends to continue operating as normal throughout the bankruptcy process and until its sale to Walgreens is complete. To do this, Drug Fair secured a four-month, $40 million, debtor-in-possession facility.
Prior to filing bankruptcy, Drug Fair sold some assets related to 13 of its stores to third parties, including Walgreens; which specifically purchased prescription files from 11 Drug Fair stores.
Walgreens said it plans to keep most, but not all of the acquired Drug Fair stores open. As of Jan. 31, 2009, Walgreens drug store fleet was comprised of 6,659 stores, including 112 stores in New Jersey.
According to CoStar Tenant, the typical Drug Fair store is 15,000 square feet. Drug Fair leases a 200,723-square-foot building that serves as its headquarters on Cottontail Lane in Franklin Township, NJ.
Deloitte, PricewaterhouseCoopers To Split Up BearingPoint Assets
Deloitte, which provides audit, consulting, financial advisory, risk management, and tax services, signed an asset purchase agreement to acquire substantially all of the assets of the North American Public Services practice of BearingPoint out of bankruptcy for total consideration of $350 million in cash and the assumption of certain BearingPoint liabilities.
The acquisition of McLean, VA-based BearingPoint's Public Services practice would accelerate Deloitte's expansion of its federal government services business.
In addition, BearingPoint has signed a non-binding letter of intent to sell a substantial portion of its North American Commercial Services business, including its Financial Services segment, to PricewaterhouseCoopers LLP for $25 million.
BearingPoint is a global management and technology consulting company that filed for Chapter 11 bankruptcy protection on Feb. 18. The agreements are subject to approval by the bankruptcy court, which may consider higher competing bids.
BearingPoint is also in late-stage negotiations with its local management teams to sell its Japanese, Asian Pacific, European and Latin America practices.
Landlord Forces Transmeridian Exploration's Hand
Transmeridian Exploration Inc. and two of its wholly owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 in the Southern District of Texas.
On Feb. 17, Transmeridian Exploration received written notification of the termination of its right to occupy its leased premises at 5847 San Felipe, 43rd Floor, in Houston, TX. In addition, the landlord, TPG-San Felipe Plaza LP (Thomas Properties Group), demanded for immediate payment of rent and all costs due under the lease, an amount totaling $607,749.
Lease Cancellations
This week's lease cancellations applied for through bankruptcy court actions in the defunct subprime arm of Lehman Brothers and from newspaper publisher Journal Register Co.
Prior to filing bankruptcy last fall Lehman Brothers had announced plans to shut down its subprime mortgage lending unit, BNC Mortgage LLC. BNC was one of the top 20 subprime producers in 2006, originating over $14 billion in loans. Now as part of its bankruptcy filing Lehman Bros. is seeking to cancel 13 BNC leases.
The Journal Register Co. based in Yardley, PA filed for relief under Chapter 11 in February in Southern District of New York. The filing was part of a pre-negotiated plan of reorganization with certain of its secured lenders designed to reduce substantially the publishing company's debt. Prior to the filing, the company embarked on an organizational restructuring and shut down some of its publications.
| Company | Address | City | State | Landlord or Landlord Contact | | BNC Mortgage | 1475 S. Bascom Ave., Suite 101 | Campbell | CA | Creekside Business Mall LLC | | BNC Mortgage | 22632 Golden Springs Drive, Suite 200/210 | Diamond Bar | CA | Rosemead Properties, Inc. | | BNC Mortgage | Corridors II Building, 2655 Warrenville Road, 5th Floor | Downers Grove | IL | Corridors I & II/Loudoun II SPE Feeco LLC | | BNC Mortgage | 500 N. Central Ave., Suite 300 | Glendale | IL | GRE Glendale LLC | | BNC Mortgage | 5450 W. Sahara Ave., Suite 200 | Las Vegas | NV | 5450 West Sahara LLC | | BNC Mortgage | 1501 W. Fountainhead Pkwy., Suite 130 | Tempe | AZ | Amberjack Ltd. | | BNC Mortgage | 16400 Southcenter Parkway, Suites 405 and 408 | Tukwila | WA | Sunray Investments LLP | | BNC Mortgage | 300 Galleria Officentre, Suites 400 and 406 | Southfield | MI | Galleria Properties LLC | | BNC Mortgage (tenant); Redd Shell Corp. (Subtenant); Trustwave Holdings Inc. (Subsublessee) | 6300 S. Syracuse Way, Suite 110 | Centennial | CO | Legacy III Centennial LLC | | BNC Mortgage (tenant); Aimbridge Hospitality LP (subtenant, 4,915 sf); Wingspan Portfolio Advisors LLC (subtenant, 5,488 sf) | 4100 Midway Road, Suite 1110 | Carrollton | TX | CB Office 10, Ltd. | | BNC Mortgage (tenant); Lehman Brothers Bank FSB (subtenant) | 4100 E. Mississippi Ave., Suite 1000 | Glendale | CO | Mountain Towers Properties LLC | | BNC Mortgage (tenant); The Training Authorities LLC (subtenant) | 1225 E. Fort Union Blvd., Suite 100 | Midvale | UT | Northwest LLC (Union Park Office Building Salt Lake City LP) | | BNC Mortgage (tenant); HTC America Inc. (subtenant) | 1051 Perimeter Drive | Schaumburg | IL | Beneficiaries of North Star Trust Co. | | Company | Landlord Address | City | State | Landord | | Journal Register Co. | 17 Wabank Road | Millersville | PA | CBS Properties | | Journal Register Co. | 401 S. Market Ave. | Mount Joy | PA | Chronicle Properties | | Journal Register Co. | 403 S. Limestone Road | Parkesburg | PA | Donald Althouse | | Journal Register Co. | 48 S. Market St. | Elizabethtown | PA | Preferred Realty | | Journal Register Co. | 2005 S. Easton Road, Suite 306 | Doylestown | PA | Penn's Grant Realty | | Journal Register Co. | 44A 74th St. | Brooklyn | NY | Edward Short | | Journal Register Co. | 529 Fayette St. | Conshohocken | PA | Demeido Agency | | Journal Register Co. | 1626 Amity Road | Rydal | PA | The Henry Partnership | | Journal Register Co. | | Newtown Square | PA | DPRM 550 Exton Commons LP | | Journal Register Co. | 680 N. Broad St. | Middletown | DE | Automotive Financial Services | | Journal Register Co. | 7300 City Ave. | Philadelphia | PA | Herbert Yentis &Co Realtors | | Journal Register Co. | 31530 Concord Drive | Madison Heights | MI | 6145 Wall Street Partners LLC | | Journal Register Co. | | Harrison | MI | Red Oak Leasing | | Journal Register Co. | 495 W. Sanilac Road | Sandusky | MI | Graff Chevrolet Buick | | Journal Register Co. | | Elk Rapids | MI | L Lee Enterprises LLC | | Journal Register Co. | 440 Hemlock St. | Boyne City | MI | Husan Land Co. | | Journal Register Co. | 4878 Bailey Bridge Route 1 | Freeland | MI | Michael Engwis | | Journal Register Co. | 72758 Mallard Drive | Romeo | MI | Cin Cons Inc. | | Journal Register Co. | | Cadillac | MI | Kiley Lease Investments LLC | | Journal Register Co. | 31850 Northwestern Highway | Farmington Hills | MI | Agree Partnership | | Journal Register Co. | 39466 Village Run Drive | Northville | MI | Quinian Park Property LLC | | Journal Register Co. | 15 Potter St. | Haddonfield | NJ | Joyce Mullen | | Journal Register Co. | | Hillsdale | NY | Larry Edelman | | Journal Register Co. | 28 Gibson Blvd. | Clark | NJ | Marcon Enterprises | | Journal Register Co. | 1820 Van Reed Road | Reading | PA | Robert Marella | | Journal Register Co. | 5698 Forman Drive | Bloomfield Hills | MI | Optimal International | | Journal Register Co. | 102 S. Clifton St. | Manchester | MI | Unic01 LLC | | Journal Register Co. | NovaCare Complex One NovaCare Way | Philadelphia | PA | Eagles Stadium Operator LLC | | Journal Register Co. | 5 Championship Drive | Auburn Hills | MI | Palace Sports & Entertainment, Inc. | | Journal Register Co. | c/o Detroit Tigers. Comerica Park, 2100 Woodward Ave. | Detroit | MI | Tiger Ballpark LLC | | Journal Register Co. | | Philadelphia | PA | Phillies Ballpark LP |
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