BOSTON, March 3, 2011 (GLOBE NEWSWIRE) -- Concord Debt Funding Trust ("Concord"), an entity owned by a joint venture among subsidiaries of Winthrop Realty Trust (NYSE:FUR), Lexington Realty Trust (NYSE:LXP), and Inland American Real Estate Trust Inc., announced today that the Delaware Supreme Court has unanimously affirmed the Delaware Chancery Court's prior ruling that the notes issued by Concord Real Estate CDO 2006-1 Ltd. (the "CDO"), a debt platform sponsored by Concord, and held by Concord were validly delivered by Concord for cancellation to the notes registrar as of January 5, 2010, and, as such, were no longer outstanding as of that date.
As a result, subject to the filing by the Trustee of a motion for re-argument within 15 days after entry of the Supreme Court's order, the CDO expects the Trustee to release the funds that have been held by the Trustee in escrow pending the resolution of this matter. Once released, the CDO will be able to:
- make all current and past due payments on its remaining notes;
- re-invest approximately $33 million in new assets for the benefit of all of the CDO's noteholders and Concord; and
- make distributions to Concord on account of its equity interest in the CDO to the extent of any escrowed amounts and future payments in excess of the CDO's current obligations on its notes. These expected continuing distributions will enable Concord to satisfy its obligations and make distributions to its equity holders in accordance with Concord's organizational documents.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may individually or collectively impact the matters herein described. Forward-looking statements, which are based on certain assumptions and describe Concord's future plans, strategies and expectations, are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "estimates," "projects" or similar expressions. Concord undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events. Accordingly, there is no assurance that Concord's expectations will be realized.
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