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RAIT Financial Seeks Ch. 11 Protection
Philadelphia-based RAIT Financial Trust has filed for Chapter 11 protection at U.S. Bankruptcy Court in Delaware. The mortgage REIT has also agreed to sell substantially all of its assets to an affiliate of Fortress Investment Group for $174.4 million.
The agreement with Fortress, which also includes the assumption of certain liabilities, is a stalking horse bid subject to higher and better offers for RAIT’s assets under bankruptcy court supervision. Following the chapter 11 filing, RAIT will continue to operate as a “debtor-in-possession” under the jurisdiction of the court.
The August 30 filing for Chapter 11 protection followed by 10 days RAIT’s receiving a notice that it had defaulted on its 7.125% senior notes. Previously, the company informed regulators that it would be overdue in filing its quarterly reports for both the first and second quarters of this year.
Pictured: RAIT Financial headquarters at Cira Centre, Philadelphia.
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