Trizec Announces Debt Restructure
From Times Staff and Wire Reports
North America’s largest public real estate company, Trizec Corp., announced Tuesday a major debt restructuring designed to pull it back from the brink of bankruptcy.
The Calgary-based real estate giant, which owns La Jolla-based shopping center developer Hahn Co., lost $424 million last year and is $4.3 billion in debt. It has been trying to avoid a collapse caused by dropping real estate values.
Under the restructuring plan, Trizec proposes to convert its Class A voting shares and Class B shares into a single class of common shares. It aims to reduce its debt by $671 million and cut servicing costs on debt and preferred shares by $101 million a year.
