It Was Over When

It Was Over When

It Was Over When : Morgan Stanley had keys to the creditors on the $ 2.4 billion for investment in the Japanese chain of hotels, when it becomes debt due in April, according to The Wall Street Journal, citing people familiar with the matter.

Morgan Stanley got a series of 13 hotels from All Nippon Airways in 2007, in what was known at the hotel, the largest deal in Asia, “he told Reuters. Since then, property prices all over the world have fallen sharply, hit by global financial crisis.

Two of the major lenders in the procurement process, Citigroup and Shinsei Bank, Morgan Stanley want to put more equity in the property, for more security against falling prices, the magazine said.

However, even Morgan Stanley is now reluctant to do so, the paper said.

Another lender, the Government of Singapore Investment Company, and interested in the acquisition of hotels from Morgan Stanley, sovereign wealth fund is currently in discussions with other lenders, according to the magazine.

The real estate market in Japan has become influential in recent years, with investors from abroad, such as Morgan Stanley and Goldman Sachs and recorded a series of major deals, Reuters noted.

But were forced to foreign players to retreat after the global credit crisis, leaving behind a growing pile of distressed property, such as the developments that have failed, companies are unable to refinance loans and developers bankrupt.

Japan was worth $ 23.8 billion of distressed assets in the fourth quarter of 2009, more than double the $ 9.5 billion in the same period last year, according to data from Real Capital Analytics.

Shinsei Bank, a lender about a third of medium-sized enterprises owned by the United States purchase of JPMorgan Chase & Co. and the company warned investors this month it may need to book additional reserves and write-offs related to real estate investments.