What is happening to the rental income on the unsold Gramercy Court units?
Pathfinder believes that approximately 98% of the Gramercy Court units remain unsold and approximately 75% of the Gramercy Court units were vacant as of April, 2007. The Borrower has been collecting rents on approximately 60 units but has not been making principal or interest payments on the loans. In a recent Order, the Bankruptcy Court permitted the Borrower to use the cash collected from the operations of the complex to fund its operating expenses, even though the debt is not being serviced. In that same Order, the Court requires the Borrower to pay $30,000 per month to the direct lenders’ loan servicer, Compass Financial Partners.
