The Law Offices of Ronald P. Slates, P.C.
A Proffessional Corporation est 1980

November 2013 Archives

Interest rates on commercial mortgages may continue to rise

With improvements to the economy, we are also seeing higher interest rates on commercial mortgages.  Certain commentators seem to be suggesting that interest rates will continue to increase during the next few years.  The Federal Reserve has sent out messages that it would be slowing its bond acquisition program.  This could be interpreted as meaning agency officials are also willing to increase interest rates.

Parent companies actions subject for creditors concerns

It is reported that a grocery chain named Fresh & Easy Neighborhood Market has declared bankruptcy. The venture had apparently been financed by a parent company named Tesco in the amount of $3 billion. On the other hand, Tesco has also removed $214 million from Fresh & Easy in what some may consider insider payments regarding what was owed. This amount would be the equivalent of 19 percent of Fresh & Easy's net revenues for the year ending on February of 2013. Absent other bids, Tesco may now be able to finance a sale of this business to another company in an effort to keep the venture running.

Investor sells bonds backed by rental home properties

With the return of the housing market, we are also once again seeing more businesses willing to take on risks in the real estate market.  Blackstone Group LP has been investing heavily in California and across the U.S. in the sales of bonds that are backed by rental-homes.