Chastain Capital Announces Sale of Asset
ATLANTA--(BUSINESS WIRE)--Aug. 17, 1999--Chastain Capital Corporation (Nasdaq/NM:CHAS) today announced that the Company had entered into an agreement to sell its investment in a $21,000,000 Mezzanine Loan to BankBoston, N.A. The loan is currently being held by GMAC Commercial Mortgage Corporation pursuant to the repurchase agreement entered into in April 1999. The Company will exercise its rights to repurchase the loan from GMAC prior to consummating the sale to BankBoston. The total consideration the Company will receive is $21,756,000. The sale of the loan will result in a realized loss of approximately $2.65 million, all of which has been recognized in the Company's financial statements as of June 30, 1999.
The asset sale is subject to the approval of shareholders of the Company, and the matter is expected to be submitted to shareholders, together with the previously announced sale of assets to Insignia Opportunity Partners and a Plan of Liquidation and Dissolution, at the Company's annual meeting, currently scheduled for October 1999. The Company may enter into additional agreements to sell assets, which asset sales would also be submitted to shareholders for approval at the annual meeting. |
