Perhaps just a quibble over terminology, but the article says that Trizec will definitely take ownership and assume the loan, which is consistent with the Bloomberg story I referred to earlier. What remains to be decided is if they can renegotiate the terms.
This article sure provides a lot of additional useful info, though. Thanks for posting it.
It was mentioned that the appraised value was $912 mil last year but was reappraised at around $826Mil but they are under the assumption that the appraisal has dropped big after 911. Also they want to know if congress will pass some kind of terrorism legislation before they make any committment.
The only one that is screwed is Metlife. They own the building and it's value has collapsed. TRZ wants to assume a much lower mortgage, get terrorism legislation before committing to this NON RECOURSE mortgage. That means the assets backs up the mortgage. Much lower mortgage will need to be assumed to make the building cashflow favorable. MetLife may have to absorb a huge loss on the mortgage. Hopefully it will drop substantially to justify lower rents. As far as I am concerned no committment has been made just assessing the situation.
Also mentioned that the stock price is trading at a 40-50% discount to peer valuations and bigger discount to asset value.