Excess Spread — Apollo and the department stores, requiem for Credit Suisse, how to do good
- Owen Sanderson
Not my department
In the year of our lord 2023, who on earth wants department stores? That’s a pertinent question because of the collapse, earlier this year, of German chain GKK or Galeria for short. One of the Ks in GKK, however, stands for Karstadt.
For securitisation people of a certain vintage, this name will be dredging up war stories. KarstadtQuelle was the anchor tenant of the Fleet Street Finance Two, a 2006 CMBS sponsored by Goldman Sachs, which became an incredibly high profile restructuring following Karstadt’s 2009 insolvency. It was the first CMBS in Europe where bondholders manage to agree a bond extension, and required all manner of creditor-balancing, with four CMBS classes, three mezz classes and a separate senior loan.