In a release, Centerline says it's also shifting resources toenhance its special servicing and asset management functions. "Youlook hard at all of your departments and make the best use of yourresources," the source says. "These are the realities of themarketplace. But it can also result in a more efficient operation."As part of the reallocation of resources, the company will move itsNew Jersey operations into the Manhattan office.

The news follows Centerline's announcement last Friday that thecompany and its lenders had entered into an amendment to itsrevolving credit and term loan agreement. According to a release,Centerline has agreed to reduce its term loan debt to no more than$50 million by Nov. 21, which requires a payment of approximately$18.8 million.

The payment deferment resulted in a downgrade by Moody'sInvestor Service on Centerline's corporate family rating from B1 toB2. Centerline is negotiating with its lenders on a debt-financingpackage to stabilize its finances longer term.