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GlobeSt.com UPDATE: Agreements Reached in WTC Disputes

NEW YORK CITY-Issues on debt repayment have been agreed upon and GMAC Commercial Mortgage Corp. is readying the paperwork to begin the process of settling up the accounts.

By Barbara Jarvie | Updated on December 02, 2003

NEW YORK CITY-Accord has been reached in the ongoing legal wrangling over the rebuilding of the World Trade Center site. A settlement has been in the works since late October, when all the parties involved agreed to attempt to resolve the matter. In early September, GMAC Commercial Mortgage Corp. had filed an action in New York State Court against the Port Authority of New York and New Jersey, owner of the site, and the World Trade Center LLCs to compel them to comply with contractual obligations during the rebuilding process. GMACCM said it wanted to protect the interests of its certificateholders in the $563 million loan that GMACCM made to the World Trade Center LLCs. The PA will use insurance proceeds to pay off the debt.

GMACCM officials note they were “pleased” to learn of the agreements and that “work has now started the process of requesting its certifiicateholders’ consent to the prepayment of the loan.”

In an agreement previously announced in September, Westfield America Trust will sell its interest in the World Trade Center retail premises to the Port Authority for $140 million. Expected to close by the end of the year, the Sydney-based Westfield’s chief executive Peter Lowry says the sale of its interests will “help simplify the overall process and expedite the rebuilding of the World Trade Center.” Westfield held on to a right of first refusal agreeing to pay $1 million if leasing rights are offered to another retailer.

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