MPG Office Trust's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Also in May, we disposed of the City Tower development site located in Orange, California. We received net proceeds from this transaction of $7 million, which will be used for general corporate purposes.

Also in May, a trustee sale was held with respect to Stadium Towers Plaza. As a result of the foreclosure, the company was relieved of a $100 million of debt and received a general release of claims under the loan documents.

In June, 3800 Chapman was cooperatively placed in receivership. We entered into an agreement with the special servicer pursuant to which the company will temporarily remain the title holder of the asset until 3800 Chapman is transferred to another party or there is a completed foreclosure, with a definitive outside exit date of December 31, 2012.

Pursuant to the agreement, we will receive a general release of claims under the loan documents at the time of our exit. Also pursuant to the agreement, we received a release of all claims under the guaranty of partial payment related to the loan in return for a payment by the company of $2 million.

In July, we completed the one-year extension of the mortgage loan on KPMG Tower. The new maturity date is October 2013. The extension required a $35 million principal paydown, reducing the outstanding principal balance of $365 million. We also contributed $5 million to a leasing reserve. A full cash sweep goes into effect in September 2012 for the remaining term of the loan to first fund capital reserves and leasing reserves and then amortize the loan.

Also in July, we disposed of Stadium Gateway, a joint venture property of which we owned 20%. We received net proceeds from this transaction of approximately $1 million, including reimbursement of loan reserves which will be used for general corporate purposes.

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