| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for Prime Group Realty Trust > News item |
Prime Group unit sells membership interest in Extended Stay parent
By Caroline Salls
Pittsburgh, Sept. 24 - Prime Group Realty Trust wholly owned subsidiary PGRT ESH, Inc. sold its membership interests in BHAC Capital IV, LLC, an entity that owns 100% of Extended Stay Hotels, Inc., to LSG-ESH LLC, an affiliate of Prime Group's chairman of the board, according to a company news release.
The consideration for the sale was LSG-ESH's assumption of all of PGRT ESH's rights under an $80 million Citicorp USA, Inc. loan.
In connection with the transfer, PGRT ESH was released from its obligations under the Citicorp USA loan, which encumbers the BHAC membership interests.
In addition, Prime Group said the maturity date of the Citicorp loan was extended.
According to the release, the transfer of the BHAC membership interest was approved unanimously by the company's independent trustees.
Additionally, Prime Group said a judge has ruled that a lawsuit filed against one of its subsidiaries by Prime/Mansur Investment Partners, LLC has no merit.
The lawsuit alleged that the termination of a purchase and sale agreement that provided for Prime/Mansur's acquisition of Prime Group's membership interest in Plumcor Thistle, LLC was not justified.
Prime/Mansur requested the court grant it either specific performance or $5 million in damages.
Prime Group is a Chicago-based real estate investment trust, which owns, manages, leases, develops and redevelops office and industrial real estate.
Extended Stay, a New York-based owner and operator of mid-priced extended stay hotels, filed for bankruptcy on June 15 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 09-13764.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.