RAIT Financial Trust is headquartered at Two Logan Square in Philadelphia.

PHILADELPHIA—Locally-based RAIT Financial Trust reported last week it had filed for Chapter 11 bankruptcy protection at the United States Bankruptcy Court for the District of Delaware in Wilmington, DE.

In conjunction with the bankruptcy filing, the internally-managed REIT reports it has entered a stalking horse equity and asset purchase agreement with an entity owned by funds managed by affiliates of Fortress Investment Group of New York City with a bid of $174.4 million.

RAIT, which manages a portfolio of commercial real estate loans and properties, states that it is seeking approval from the Bankruptcy Court of bid procedures in order to attract higher and better bids for RAIT's assets, or to have bidders propose an alternative transaction.

Once the bid procedures are approved by the Bankruptcy Court, RAIT will initiate the formal bidding process, and at such time interested parties will be able to obtain more information on the bidding process, the company states.

RAIT will continue to operate as a "debtor-in-possession" under the jurisdiction of the Bankruptcy Court. RAIT expects to file a number of first day motions with the Bankruptcy Court that, among other things, will seek authorization to continue the operations of RAIT in the ordinary course of business during the sale process. RAIT expects to receive court approval for these requests.

Drinker Biddle & Reath LLP and Ledgewood, P.C. are acting as legal counsel, M-III Partners, L.P. is acting as financial advisor, and UBS Securities, LLC is acting as investment banker to RAIT and its affiliates in connection with the proposed sale and the bankruptcy proceedings.

Stroock & Stroock & Lavan LLP and Young Conaway Stargatt & Taylor, LLP are acting as legal counsel to Fortress and its affiliates.

Instant Insights /

RAIT Financial Trust Files for Bankruptcy; Enters Stalking Horse Deal

Related Stories

Recommended For You