X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-In common with other real estate service firms amid the capital markets crisis, Centerline Holding Co., the parent company of Centerline Capital Group, has announced reductions in its workforce nationwide. A Centerline Capital source tells GlobeSt.com the staff cutbacks total about 100 employees, or 20% of the workforce, and are occurring mostly in New York City, the largest of its nine offices.

In a release, Centerline says it’s also shifting resources to enhance its special servicing and asset management functions. “You look hard at all of your departments and make the best use of your resources,” the source says. “These are the realities of the marketplace. But it can also result in a more efficient operation.” As part of the reallocation of resources, the company will move its New Jersey operations into the Manhattan office.

The news follows Centerline’s announcement last Friday that the company and its lenders had entered into an amendment to its revolving credit and term loan agreement. According to a release, Centerline has agreed to reduce its term loan debt to no more than $50 million by Nov. 21, which requires a payment of approximately $18.8 million.

The payment deferment resulted in a downgrade by Moody’s Investor Service on Centerline’s corporate family rating from B1 to B2. Centerline is negotiating with its lenders on a debt-financing package to stabilize its finances longer term.

Last week, Centerline was notified by the New York Stock Exchange that it is considered below criteria on one of the exchange’s continued listing standards. The company says in a release that the notification was made because its total market capitalization has been less than $75 million over a consecutive 30 trading-day period and its last reported shareholders’ equity was less than $75 million. Centerline has 45 days to submit a plan to the NYSE demonstrating how it intends to comply with the NYSE’s continued listing standards within 18 months. The company intends to do so within that time frame, according to the release.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.