Taurus CMBS (Germany) 2006-1 final distribution delayed by winding up

By Caroline Salls

Pittsburgh, Feb. 15 – Taurus CMBS (Germany) 2006-1 plc’s insolvency administrator said a final distribution payment in connection with the completion of the company’s insolvency proceedings “will be highly unlikely to be achieved before 2020” because of the winding up of the borrowing company and a subsidiary, according to a notice released Friday.

The notice was sent to holders of Taurus CMBS’ class A commercial mortgage-backed floating-rate notes due 2015, class X commercial mortgage-backed variable-rate note due 2015, class B commercial mortgage-backed floating-rate notes due 2015, class C commercial mortgage-backed floating-rate notes due 2015 and class D commercial mortgage-backed floating-rate notes due 2015.

Taurus said €220,000 from the insolvency administrator was distributed in January, for a total distribution to the company’s securitization of €720,000.

A total of €430,000 remaining from an initial €1.5 million held in escrow will be released by the administrator after any further costs have been paid.

According to the release, the notes matured on April 22, 2015, but the cancellation of the notes was deferred.

Insolvency proceedings were opened in April 2015 after the Bremen borrower was unable to repay a loan.

Taurus said a special servicer has consented to the Bremen borrower insolvency administrator’s signing of a €17.5 million sale and purchase agreement related to the Bremen security, and agreement was signed on April 13, 2017.

The company said €15.5 million was transferred to the special servicer’s account for distribution to the securitization of the October 2017 loan payment on Aug. 16, 2017, and €2 million was held back by the insolvency administrator to cover representations, warranties, liabilities and to ensure a solvent winding up of the borrower.

A total of €500,000 has been retained by the administrator and can be released to the lenders no earlier than 15 months after the sale if no claims have been made against the representations and warranties of the seller.

The remaining €1.5 million will be retained by the insolvency administrator to pay for all costs fees and expenses incurred from the sale of the Bremen property and expenses incurred for the liquidation of the Bremen borrower.

Taurus is a Dublin-based general and industrial credit provider.

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