CHICAGO-The creditors of Rubicon US REIT, Starwood CapitalGroup, Kaufman Jacobs LLC and JPMorgan Chase & Co., havepartnered to pull the locally-based trust out of bankruptcy. Thetrust’s holdings, mostly leased by government tenants, are valuedat about $550 million.

Rubicon was a subsidiary of Australian-based Rubicon AmericanTrust, which had filed bankruptcy in June 2009. The US trust alsowas forced into bankruptcy by its parent, but the creditorsgathered together to arrange a reorganization.

Per terms of the reorganization, about $80 million in bonds wereexchanged for 100% of the common stock of the US REIT and theissuance of new corporate debt of $50 million, which ensuresadequate solvency, according to Jeremy Kaufman, CEO ofChicago-based Kaufman Jacobs. He says class A preferredstockholders will retain their equity through the bondholder’splan, and unsecured creditors will be paid in full, about $1million.