In a release, Centerline says it's also shifting resources to enhance its special servicing and asset management functions. "You look hard at all of your departments and make the best use of your resources," the source says. "These are the realities of the marketplace. But it can also result in a more efficient operation." As part of the reallocation of resources, the company will move its New Jersey operations into the Manhattan office.
The news follows Centerline's announcement last Friday that the company and its lenders had entered into an amendment to its revolving credit and term loan agreement. According to a release, Centerline has agreed to reduce its term loan debt to no more than $50 million by Nov. 21, which requires a payment of approximately $18.8 million.
The payment deferment resulted in a downgrade by Moody's Investor Service on Centerline's corporate family rating from B1 to B2. Centerline is negotiating with its lenders on a debt-financing package to stabilize its finances longer term.
Last week, Centerline was notified by the New York Stock Exchange that it is considered below criteria on one of the exchange's continued listing standards. The company says in a release that the notification was made because its total market capitalization has been less than $75 million over a consecutive 30 trading-day period and its last reported shareholders' equity was less than $75 million. Centerline has 45 days to submit a plan to the NYSE demonstrating how it intends to comply with the NYSE's continued listing standards within 18 months. The company intends to do so within that time frame, according to the release.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
