(Reuters) – Real estate and investment company Colony Capital Inc CLNY.N said on Friday that its holding companies had defaulted on $ 3.2 billion in debt guaranteed by hotels and health-related properties.
Colony Capital Received “Acceleration Notice” Covering $ 780 Million In Defaulted Debt, Says In Regulatory File bit.ly/2SOt8wl.
The company also suspended its joint dividend for the second quarter of 2020 and said it was prudent to conserve cash during a period of uncertainty caused by the COVID-19 pandemic.
Earlier this year, Colony Capital struck a deal with Blackwells, giving the activist investor a fourth seat on the board and creating a new vehicle to buy Colony shares on the open market.
Blackwells and Colony decided last year to give Blackwells two seats on the board and agree on a third director later.
However, Blackwells has kept the pressure on Colony ever since and in November called on Tom Barrack, a billionaire friend of US President Donald Trump, to step down as CEO of Colony.
Barrack had planned to leave the post in 2021 but will now leave earlier. Since Blackwells became involved with Colony, the company has cut costs, sold its industrial segment to Blackstone Group and pushed Kevin Traenkle to step down as chief investment officer in February.
Report by Abhishek Manikandan in Bengaluru; Editing by Maju Samuel