Skip to main content
No. of Recommendations: 0
From what I understand iStar has two options.
1. effect a cde (coercive debt agreement) which Fitch regards as a default, but it's atually a negotiation with bondholders about changing the terms of the debt. If this happens, then I assume the maturing $2.5 billion due this time next year will be restructured and potentially there will be repayment?
2. If the CDE doesn't work, it's likely to be a pre-packaged bankruptcy. If this happens, I'm not sure about the chances of repayment.

Over 50% of the loan portfolio consists of non-performing or 'watch list' loans, backed by condos and land. So I would assume unless things pick up rapidly in these two areas the chances of them getting money to repay debt is slim.

Plus, I think iStar's total debt is around $8 billion.

I don't know enough about bankruptcy workouts to advise on who is likely to get what. But it seems pretty bad on the surface.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.