World Market Center In Default on Mortgages
September 19th, 2010 at 07:00am Under Furniture News
According to a report released from the Las Vegas Business Press, the World Market Center is in default on the mortgages for several of its buildings. The report claims that buildings A and B are in foreclosure, however the furniture market is denying those claims. “Certain parties have been misrepresenting this fact for months despite our notice to them,” the WMC said in a statement to the newspaper.
The story cites that declining occupancy in the market and low rents are the problems that have caused the default on the two loans that total almost $565 million. Realpoint research numbers were cited that revealed the occupancy in Building A decreased from 97% at the close of 2007 to 85% in June of 2009. And, that Building B occupancy numbers decreased from 89% to 75% during the same period.
WMC informed the loan servicing agents that it would have no choice but to skip the loan payments due to declining cash flow. According to the Business Report, the default occurred in April. A report released in August by Realpoint stated that the lender had extended a forebearance agreement to voluntarily hold off on any repossession until August 31. The WMC issued a complete statement on the problems.
“World Market Center Las Vegas buildings are not in foreclosure. Certain parties have been misreporting this fact for months, despite our notice to them. A simple review of the public records would reveal that there is no foreclosure process pending now or at any time in the past with respect to any of the buildings.
“In fact there is absolutely nothing new contained in the Las Vegas Review-Journal’s report. The report is citing misinformation that was circulated in the media months ago.
“The reality is, for the past year we have been proactively working with our financiers toward a financial structure that gives us flexibility to operate in this economic environment. Those discussions have been productive and positive; we are optimistic that very soon we will have a favorable outcome. We have a long term perspective of World Market Center Las Vegas and a long term commitment to the home furnishings industry.”
By MCC