Mission Peak ruffles feathers with stealthy NY hotel swoop - Reuters

LINK: Mission Peak ruffles feathers with stealthy NY hotel swoop

Publish Date: June 20 2014

“As the controlling class they were undoubtedly aided by inside knowledge,” Shlomo Chopp, managing partner at Case Property Services, a distressed debt advisory firm, told IFR. “I don’t believe they did anything wrong - it’s as simple as dealmakers capitalizing on the limitations of special servicers on these sort of workouts.”

But because they acted on this, Chopp said, and realized profit at the controlling class level - as opposed to distributions to the trust’s upper classes - senior bondholders will likely be more than a little unhappy with the deal.

“The same day purchase, workout and flip of the loan can’t sit well,” Chopp said.