Mandel, who was hired by China Trust Bank to sell the firsttrust deed, tells GlobeSt.com that the note was a participationloan between China Trust Bank and the First Bank of Beverly Hills,which was taken over by the FDIC in late April 2009. Mandelestablished a $14M asking price and generated six offers fromqualified buyers, one of whom was chose at the cash price of $13.4million but requested a price reduction to $12.6 million two daysbefore the scheduled close of the sale.

Since the FDIC was unable to approve the price reduction of itsportion of the note, the FDIC portion subsequently sold at auctionto a Beverly Hills bank for an undisclosed sum. After that, thebank that bought the FDIC portion of the note worked in conjunctionwith China Trust and Mandel to re-market the note at a $14 millionasking price.

Mandel says that the second round generated 14 offers in 10days, varying from $4 million to $14 million, and including a $13.4million offer from the same buyer who had previously bid $13.4million and who ultimately bought the note. This time, the bidderclosed within 10 days.