In response to a substantial number of requests for information regarding GMAC’s exposure to the World Trade Center properties, GMAC expressed its “deepest sorrow and sympathy” and released the following statement.
“On July 24, 2001, GMAC Commercial Mortgage, a subsidiary of GMAC, provided a $563 million first mortgage loan secured by a leasehold interest in four properties in the WTC complex (the Twin Towers and Four and Five World Trade Center). A total of $483 million of the mortgage loan was subsequently sold to a large number of investors.
GMAC Commercial Mortgage retained $80 million of the mortgage loan. “GMAC Commercial Mortgage also committed to provide a $200 million mezzanine loan to provide funds for specified future capital improvements. Given the tragic events at the property, there will be no future improvements at the WTC. As a result, we do not believe the $200 million mezzanine commitment represents an exposure for GMAC.
“The insurance required in connection with GMAC Commercial Mortgage’s financing does not exclude coverage for acts of terrorism (and includes damage caused by aircrafts). The insurance is from a consortium of 22 large and well-rated insurers.
“On September 12, 2001, GMAC Commercial Mortgage, on behalf of the bondholders, gave notice of its status as mortgagee and loss payee under the various insurance policies and requested information on the anticipated date for payment of claims.”
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