Tue 05/02/2008 07:37
FRANKFURT (Thomson Financial) - Deutsche Bank AG could face a multi-bln-usd credit fallout if tycoon Harry Macklowe fails to refinance by Friday a loan from the bank used to invest in Manhattan real estate, Handelsblatt quoted sources close to the matter as saying.
Macklowe borrowed 5.8 bln usd from Germany's largest bank to acquire seven Manhattan office buildings early last year.
The debt is scheduled to come due at the end of the week but Macklowe has not yet managed to refinance it, according to the paper.
It said Deutsche Bank has taken effective control of the buildings, but added that it is questionable whether this collateral will fully cover the debt as the buildings' value has dropped over recent months.
Deutsche Bank declined to comment, the newspaper said.
A spokesman for Macklowe said negotiations with Deutsche Bank are currently underway.
Grant.
FRANKFURT (Thomson Financial) - Deutsche Bank AG could face a multi-bln-usd credit fallout if tycoon Harry Macklowe fails to refinance by Friday a loan from the bank used to invest in Manhattan real estate, Handelsblatt quoted sources close to the matter as saying.
Macklowe borrowed 5.8 bln usd from Germany's largest bank to acquire seven Manhattan office buildings early last year.
The debt is scheduled to come due at the end of the week but Macklowe has not yet managed to refinance it, according to the paper.
It said Deutsche Bank has taken effective control of the buildings, but added that it is questionable whether this collateral will fully cover the debt as the buildings' value has dropped over recent months.
Deutsche Bank declined to comment, the newspaper said.
A spokesman for Macklowe said negotiations with Deutsche Bank are currently underway.
Grant.
