NEW YORK CITY-FrontLine Capital Group Inc. subsidiary HQ Global Holdings Inc., the No 2 provider of temporary office space, missed a September 30 deadline on $8 million in debt payments, causing FrontLine to default on its line of credit, according to Bloomberg News.

HQ Global’s missed deadline triggered default provisions on FrontLine’s $25-million credit line with Bankers Trust Corp. It also throws into jeopardy a $100-million loan from Melville, Long Island-based Reckson Associates Realty Corp, should Bankers Trust decide to call the credit line, Bloomberg reports. The Reckson loan is due in 2003.

Reckson has a stable of 182 properties totaling 20.6 million sf in the New York metro area. Donald Rechler is the firm’s chairman and co-chief executive with his nephew, Scott. FrontLine, which owns 57% of HQ, was founded by Scott as Reckson Services Industries in 1998. Originally an Internet technology investment venture, the company shifted its focus to temporary office space a year ago.

The two firms are said to be in deep negotiations with their lenders on a mutually acceptable resolution to the situation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.