April 5, 2012
The Firm filed a complaint in Delaware Chancery Court on behalf of ORIX Capital Management LLC to block Brookfield Asset Management Inc. and Wells Fargo, as Special Servicer, from attempting to restructure an investment made by ORIX in a $2.8 billion securitized mortgage on the Atlantis Resort in the Bahamas and other properties. Under the proposed transaction, Brookfield would have swapped its $175 million in junior interests in the mortgage loan for 100% of the equity of the Atlantis and the other properties securing the mortgage, while ORIX and other investors senior in priority to Brookfield would have been forced into a multi-year extension of the mortgage loan. After the complaint was filed, Wells Fargo agreed not to pursue the proposed transaction. The case is entitled ORIX Capital Markets LLC v. Brookfield Real Estate Financial Partners, LLC et al., C.A. No. 7392 in the Delaware Chancery Court.