Court to settle note holders’ fight for Fleet Street pay down

The €222m of proceeds from the German multi-family housing GSW loan in Goldman Sachs’ Fleet Street 3 CMBS has become the centre of a court battle among note holders.

The most senior class A1 note holders want a fully sequential pay down, which would mean they receive all the money. But note holders lower down the capital stack also want a share.

Initially, 50% of the proceeds had been earmarked for sequential payment and 50% on a pro-rata basis. The trustee is now seeking direction from the High Court, and has asked class A2, B and C note holders to come forward with their own solutions.

In the meantime, half of the money will be distributed to the class A1s on 26 April, the next interest payment date. The remainder will be held back until a court decision is made.  Backed by sponsors Whitehall and Cerberus, the GSW loan was repaid in February partly by a refinancing with six German banks.