Sherriff's Auction of the MidContinent Building..?

[Rico]

This article really took me by surprise.
The way I understand this, Bank of America, could wind up with a very large loss on their previous merger.
May even change Downtown a bit. Depending on the winning bidder.

  http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20100529_32_E1_Traffi370046                         

[sgrizzle]

Foreclosing on a $420M note for maybe only $12M is pretty nuts.

[Cats Cats Cats]

Foreclosing on a $420M note for maybe only $12M is pretty nuts.

its not exactly a 420m note.  They are owed that much because it was 12% a year.  They are "owed" about 75% of their original investment every year now.  Obviously that isn't going to happen.  I am sure they would be happy just to get their money back with a little interest at this point.

[Oil Capital]

its not exactly a 420m note.  They are owed that much because it was 12% a year.  They are "owed" about 75% of their original investment every year now.  Obviously that isn't going to happen.  I am sure they would be happy just to get their money back with a little interest at this point.

The article actually says it is 15% per year.  No doubt the bond holders would be thrilled to pieces to get the original amounts loaned back, but that is far from certain to happen.  Do you think it will bring more than $94 Million at a sheriff's sale?  (If only Kathy Tayor were still mayor; she could have the city buy it for a city hall annex.)


Rico, it actually doesn't look like Bank of America will take a loss on it at all.  They are merely the administrator of the mortgage.  It is the "national insurance companies" and the 400 individuals who will take the losses.

[Rico]

^

Thanx for the explanation...

Be fun to attend that auction I would think.