Fannie Mae Challenges Crown Capital’s ‘Costly’ Bankruptcy Loan

Fannie Mae opposed real estate holding company Crown Capital Holdings’ request for bankruptcy financing, arguing the 18% superpriority loan would burden its multifamily properties that operate independently from the company.

The four Fannie Mae properties have been under a court-appointed receiver for more than seven months, operating entirely outside Crown Capital’s supervision and funding, the government-backed mortgage giant said in a Monday filing in the US Bankruptcy Court for the District of New Jersey.

Crown Capital hasn’t provided management or operational support during that period, it said.

The company sought $21.9 million in financing on Oct. 6. Of the 19 ...