Under the compromise agreement with KeyBank, Gramercy is making a cash payment of $45 million and will pay--over time--an additional $15 million from a portion of free cash flow generated by its 2005, 2006 and 2007 collateralized debt obligations, according to an SEC filing. The KeyBank credit facility, which dates from 2007, had an unpaid balance of $172,576,404 as of last month, the SEC filing states. According to the SEC filing, the reduced principal balance is a non-recourse obligation on the part of Gramercy.

The release states that Gramercy on March 27 satisfied all of its obligations under the repurchase facility with JPMorgan Chase via a $1.9-million cash payment and allowing JPMorgan to assume full ownership and control of--and responsibility for--the related loan asset. Clifford Chance US LLP served as Gramercy's restructuring counsel for both transactions, while Barclays Capital acted as its financial advisor in connection with the KeyBank transaction. Previously, Goldman Sachs also acted as Gramercy's financial advisor on the KeyBank deal.

At the same time, Gramercy and its advisors continue negotiations on amending its credit facility with Wachovia Capital Markets and its master repurchase facility with Goldman Sachs Mortgage Co. In Gramercy's 2008 annual report issued last month, the company said the two debts combined had an outstanding balance of $95.9 million at the end of last year.