| 4E – Bankruptcy > 30% NRA. The loan is secured by a 1,017,780 SF industrial warehouse in Edwardsville, IL built in 2005. The property was inspected on 7/22/2009 and rated in good condition. 2Q 6/30/2009 NCF DSCR is 1.47 with occupancy of 100%. YE 2008 DSCR was 1.45 with occupancy of 100%. Spectrum Brands Inc., the maker of Rayovac batteries and Remington shavers, filed for Chapter 11 bankruptcy protection 2/3/2009. Spectrum also owns the Repel and Cutter insect repellent brands, as well as pet supply and home and garden businesses. Spectrum Brands, Inc., occupies 1,017,780 SF or 100% of the NRA with a lease that expires 5/31/2018. Bank of America contacted the borrower who has reviewed the initial Spectrum BK documents and is optimistic that it is not the intent of Spectrum to terminate the subject lease. At the time of the BK filing, Spectrum immediately terminated or disclaimed eight leases related to that portion of the business (the subject property lease was not included). The subject facility serves as Spectrums Pet Supplies Business, a division which does not appear to be the subject of any significant restructuring. As a result, the borrower does not currently see any need to market the Property. The borrower indicated the tenant is current on all monthly payments. The borrower is working with outside counsel to obtain updates regarding the tenants date for acceptance/rejection of the lease. The borrower is responsive and will provide updates as available. Bank of America will continue to monitor the loan.
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