Guaranty shares spike on asset-sale reports; 804 Congress won't go into foreclosure, owner says
COMPILED FROM STAFF REPORTS
Thursday, August 13, 2009
FINANCIAL SERVICES
Guaranty Financial Group's shares soar 82% amid talk of bids for assets
Shares of Austin-based Guaranty Financial Group shot up 82 percent amid reports that some investors are considering making bids for some of its assets.
Guaranty said last month that it had run out of options to raise critically needed capital, that regulators had taken over some functions of the board of directors and that it was "probable" that the lender would not be able to keep operating.
But on Tuesday, news reports said several private equity funds and financial companies were possible bidders for its assets. Some banking consultants said a deal could come next week.
Guaranty shares closed Wednesday at 40 cents on volume that was 10 times the usual level, rising another 8 percent in extended trading.
COMMERCIAL REAL ESTATES
Owner of Congress Avenue building says foreclosure will be averted
Lenders have posted a foreclosure notice for a historical office building at 804 Congress Ave.
But the owners said they expect to iron out a dispute with their lender.
"We're in the process of working through it," said Stefan Whitwell, CEO of Tierra Capital LLC, whose affiliated holding company owns the property.
Whitwell said the dispute centers around a $500,000 loan with a private lender in California. But he said that the building is 95 percent leased and that the company has a "terrific operating plan."
Whitwell says the company he represents has "millions in equity" in the building, which was built in 1897; he said the dispute was over a "relatively small lien."