Over-Leverage isn’t Just a Problem for Homeowners

Hotel Del Coronado (HDC) finds itself in a position common to many struggling homeowners.  Over-leveraged and looking for a way to get out from underneath the crushing weight of a mountain of debt and the pending doom of a very large balloon payment on the horizon.   It appears Blackstone Group (BX) sees an opportunity in purchasing the historic hotel while it is in a weak position with its lenders committing to purchasing a large stake of the HDC for $100 million.  Blackstone and the existing owners must bring in enough capital to reduce the Hotel Del’s current debt by Feb. 9th which currently has reached a  staggering $600 million.  That’s enough to make even Marilyn Monroe blush.

Here is a link to the article.