BrokerageIndustry News

Court ruling snubs Realogy plan

Company had sought debt exchange

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Real estate brokerage giant Realogy Corp. today announced that it has has been forced to abandon its plan, announced in November, for a debt-exchange program that was intended to reduce the company's long-term debt (see Inman News). A Delaware Chancery Court Judge ruled that the plan constituted a breach of earlier contracts, according to reports. Bloomberg reported that billionaire investor Carl Icahn's High River LP, which owns Realogy bonds, and Bank of New York Mellon Corp., which is acting as bond trustee, succeeded in the challenge of Realogy's planned debt exchange. Realogy is saddled with billions in debt from a heavily leveraged buyout by an affiliate of private-equity firm Apollo completed last year -- the company reported $6.5 billion in total long-term debt as of Sept. 30.Realogy CEO and President Richard Smith told Inman News that the company is "not in default nor do we anticipate any defaults" as a result of the court decision. The company had sought ...