Realty Finance Corp., whose losses widened last year and continues to bleed cash, said Monday it may be forced into bankruptcy liquidation unless fortunes rebound for the Rocky Hill real estate investment trust.
Realty Finance Corp., formerly CBRE Realty Finance, said Monday it lost $125.6 million, or $4.09 a share, in the year ended Dec. 31.
RFC said as of Monday it was down to its last $3 million of cash reserves, a $500,000 decline since Dec. 31. The cash drain is due to cash flows from its fee from managing real estate assets that aren’t enough to cover RFC’s short- and long-term capital needs, the company said.
One of its assets is a joint venture in Philadelphia’s 20-story 1515 Market Street commercial complex that, among other things, houses Temple University and administrative offices for the Pennsylvania courts.
To conserve cash, RFC said it paid $600,000 for an early buyout of its remaining 10-year office lease in CityPlace I in downtown Hartford and is renting space month to month in an unspecified Rocky Hill location.
Meantime, interim Chief Executive Officer and President Vincent J. Costantini quit Sunday, effective immediately, citing family reasons. Chairman Douglas C. Eby is acting CEO.
Filing Chapter 7 liquidation is among strategic options RFC said its board has been evaluating as an orderly way to wind down affairs and distribute remaining cash to stockholders.
RFC said it is trying to collect on a $22.6 million judgment awarded to it by the court against the unidentified borrowers of two mezzanine loans.
Â
