White Tower to withhold £3 million class E mortgage-backed floaters

By Jennifer Chiou

New York, July 20 - White Tower 2006-3 plc announced that it will withhold £3 million of its class E mortgage-backed floating-rate notes due 2012 at the issuer level on the July 25 interest payment date.

As previously reported, the company called an Aug. 4 meeting for holders of the £68 million of class E notes to effect changes to the securities.

The trust deed for the notes also covers the £678.5 million of class A commercial mortgage backed floating-rate notes due 2012, the £171.5 million of class B commercial mortgage-backed floating-rate notes due 2012, the £116 million of class C commercial mortgage-backed floating-rate notes and the £116 million of class D commercial mortgage-backed floating-rate notes due 2012.

On the July 25 interest payment date, the class B, C and D notes will be redeemed in full while the class E notes will be partially redeemed with further distributions once costs from the sale have been finalized, the company previously stated.

As for the meeting, White Tower said that if a quorum is not present within 15 minutes of the meeting time in London, the meeting will be adjourned until Aug. 19. The quorum required is two or more persons holding at least 50% of the notes.

To be passed, each extraordinary resolution requires approval from at least 75% of the votes.

Noteholders wishing to vote should be aware of the requirement to block their notes from the period starting 48 hours before the meeting time at the latest, White Tower stated.

On June 2, the company gave notice of the completion of the sale of the Aviva property. It is looking for holders to approve the following:

• The delisting of the class E notes from the Irish Stock Exchange;

• The withdrawal of the ratings for the notes; and

• The exercise of the London-based company's right under the liquidity facility agreement to cancel the undrawn part of its liquidity facility commitment in whole.

A prior release stated that the actions are meant to reduce costs.

Holders of the class E notes are being asked separately if they agree to interest ceasing to accrue from July 25.

The paying agent is Bank of America NA (attn: Saira Afridi at mbs.notices@globalsecuritiessolutions.com).

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