Centerline Holding Company Restructures Its Workforce Nationwide.Company Also Confirms Term-Loan Extension and Moody's Downgrade NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Centerline cen·ter·line n. 1. A line that bisects something into equal parts. 2. A painted line running along the center of a road or highway that divides it into two sections for traffic moving in opposite directions, or, in the case of Holding Company (NYSE NYSE See: New York Stock Exchange :CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) ("Centerline" or the "Company"), the parent company of Centerline Capital Group, an alternative asset manager with a focus on real estate funds and financing, today announced it reduced its workforce nationwide by about 20 percent. A significant part of the Company's restructuring includes shifting resources to enhance its special servicing and asset management functions. On October 31, 2008, Centerline and its lenders entered into an amendment to its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. and term loan agreement. The Company agreed to reduce its term loan debt to no more than $50 million by November 21, 2008, which requires a payment of approximately $18.8 million. Yesterday, Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. announced it lowered Centerline's corporate family rating to B2 from B1, as a result of the payment deferment deferment Delaying of an obligation. See Default, Medical student debt. Cf Forbearance. . The Company is in active negotiations with its lenders to implement a debt-financing package to stabilize its finances longer term. About Centerline Capital Group Centerline Capital Group, a subsidiary of Centerline Holding Company (NYSE: CHC), is an alternative asset manager focused on real estate funds and financing. As of June 30, 2008, Centerline had more than $14 billion of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Centerline is headquartered in New York, New York and has nine offices throughout the United States. For more information, please visit Centerline's website at http://www.centerline.com or contact Elizabeth Haukaas at 212.521.6453. Certain statements in this document may constitute forward-looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include the potential for the Company to be considered below criteria with respect to other NYSE listing standards and the possible delisting of the Company's shares if the Company's plan for bringing it in compliance with the listing standards is not accepted by the NYSE. Other risks and uncertainties are detailed in Centerline Holding Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and include, among others, adverse changes in real estate markets, general economic and business conditions; adverse changes in credit markets and risks related to the form and structure of our financing arrangements; our ability to generate new income sources, raise capital for investment funds and maintain business relationships with providers and users of capital; changes in applicable laws and regulations; our tax treatment, the tax treatment of our subsidiaries and the tax treatment of our investments; competition with other companies; risk of loss from direct and indirect investments in commercial mortgage-backed securities and collateralized debt obligations; risk of loss under mortgage banking loss sharing agreements; and risks associated with providing credit intermediation. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements speak only as of the date of this document. Centerline Holding Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Centerline Holding Company's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion