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MPG Relieved of $700M Debt

LOS ANGELES-Expected continued suspension of California’s net operating loss tax exemption adds to speculation that the company may sell its office portfolio.

By Carrie Rossenfeld | Updated on November 06, 2012

LOS ANGELES-Although the company hasn’t stated it directly, as GlobeSt.com previously reported in August and tweeted back in July, there is mounting evidence that MPG Office Trust could sell its office portfolio. MPG’s president and CEO David Weinstein revealed during the firm’s third-quarter earnings call yesterday that MPG has relieved itself of more than $700 million of debt during the quarter due to sales of key office properties including Glendale Center ($125 million of debt relieved), 500 Orange Tower ($110 million of debt relieved) and Two California Plaza ($470 million of debt relieved).

The dispositions have left MPG’s former CEO Rob Maguire exposed to significant taxation. As GlobeSt.com reported in August, according to a statement put out by MPG in late June, the REIT “received notices of redemption from Robert F. Maguire III and related entities requesting the redemption of 3.97 million operating partnership units. On July 24, 2012, the company issued 3.97 million shares of the company’s common stock in exchange for these units. At Maguire’s request, the company issued the common stock to a party not related to Maguire.

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