Rosche Divisions Emerge From Chapter 11

All that can be learned about the bailout cash for Rosche One Interests LP and Rosche Aerospace LLC is that it's tied to the East Coast, with bankruptcy papers merely listing the "lifesaver" as RO Capital LLC. Equity also came from BVT, a Munich-based syndicate with an office in Atlanta.

The reorganization plan has been forged with two major US lenders, Life Investors Insurance Co. of America, based in Cedar Rapids, IA and owned by Aegon, which was forcing the play for the real estate, and Canadian Imperial Bank Corp. With the real estate as Rosche's only asset, the court has ordered the transfer of all Aegon-financed properties into a liquidating trust.

Months ago, GlobeSt.com was told $100 million would be available for the reorganization plan, but the final count wasn't available because Rosche has grown tight-lipped about its plan. Rosche's investment activities were fueled by capital from 3,000 "mom and pop" German investors, a group that wasn't included in the US settlement plan, but could realize some return from the liquidation of the Freiburg, Germany arm, Rosche Finanz AZ. Rosche One, midway through the bankruptcy proceedings, transferred its control to Dallas-based Rosche Corp.

It took three tries before a reorganization plan met the approval of the committee and secured creditors. With that done, US Bankruptcy Court of the Southern District in Corpus Christi stamped the plan and upheld Life Investors' claim, but at a reduced rate. It is eligible to collect slightly more than $59.6 million vs, the $63 million originally sought, $966,902 plus interest for administrative fees, and $4.4 million of cash collateral that it allowed Rosche to tap last year.

The mystery equity player has put up enough capital to satisfy all court-allowed claims, according to records. RO Capital, though, will be making payments to satisfy the $1.8-million IRS claim.

The final disposition wasn't available, but those creditors, secured and unsecured, who were lined up included Canadian Imperial Bank Corp., which wanted $30 million for the Shops at Sunset Place in South Miami for Rosche's share in a joint venture with Simon Property Group of Indianapolis; a group of investors seeking $3 million to $5 million for loans to Rosche founder Michael Vogelbacher; Deutsche Bank, $9 million; a trio of bankruptcy law firms, $1 million; and the IRS, $1.8 million. As for the German "mom and pop" investors, they were seeking $170 million from Rosche groups on both sides of the Atlantic.

The Rosche regrouping relies on real estate asset sales. Those on the block from the portfolio, some of which could have sold or are now moving into a liquidating trust, are the 235,805-sf Quadrant I-5 Complex in Bothell, WA, once occupied by Boeing Co.; 158,355-sf Meridian Center in the Seattle CBD; 7,955-sf Attorney General Building and 51,000-sf Castroville Building, both in San Antonio; 9,936-sf ITT Flygt Building in Carrollton, TX; 15,100-sf Gemini Building in Houston; and five single-tenant retail properties in the Texas towns of Abilene, Alpine, Hereford, Plainview and San Angelo.

Rosche was hoping to emerge from bankruptcy with its deeds for the headquarters, the 124,666-sf New York Life Building in Corpus Christi; 73,832-sf Sun Plaza Building, also in Corpus Christi; 79,615-sf Aerospace Building in Houston; 67,146-sf Siemens Building in North Texas' Las Colinas; and the 199,168-sf FAA Building in the state of Washington.