Report Says World Market Center Defaults on Mortgages
WMCLV Denies It's in Foreclosure
Home Accents Today Staff -- Gifts and Dec, 9/16/2010 4:01:31 PM
Las Vegas — The World Market Center has defaulted on mortgages for its buildings A and B, but the furniture market is
denying a ratings agency report that says the buildings are in foreclosure proceedings, according to a report by the Las Vegas Business Press, an affiliate of the Las Vegas Review-Journal.
"Certain parties have been misrepresenting this fact for months despite our notice to them," the WMC said in a statement to the newspaper.
The story cites declining occupancy and low rents as problems leading up to defaults on two loans totaling nearly $565 million. It cites Realpoint research service numbers that say occupancy in Building A decreased from 97 percent at the end of 2007 to 85 percent in June 2009 and Building B occupancy dropped from 89 percent to 75 percent in the same period.
WMC told loan servicing agents it would be forced to skip loan payments because of declining cash flow and that the default occurred in April, according to the Business Press report. An August report by Realpoint said the lender had extended a forbearance agreement, voluntarily holding off on any repossession moves through Aug. 31, the newspaper reported.
Here is the WMC's complete statement on the story:
"World Market Center Las Vegas buildings are not in foreclosure. Certain parties have been misreporting this fact for months, despite our notice to them. A simple review of the public records would reveal that there is no foreclosure process pending now or at any time in the past with respect to any of the buildings.
"In fact there is absolutely nothing new contained in the Las Vegas Review-Journal's report. The report is citing misinformation that was circulated in the media months ago.
"The reality is, for the past year we have been proactively working with our financiers toward a financial structure that gives us flexibility to operate in this economic environment. Those discussions have been productive and positive; we are optimistic that very soon we will have a favorable outcome. We have a long term perspective of World Market Center Las Vegas and a long term commitment to the home furnishings industry."
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