Suggestion of abandoning troubled assets boosts FelCor shares

08/18/2009 | Forbes

An analyst's suggestion that FelCor Lodging Trust could boost its value by forfeiting several "underwater" properties to lenders helped increase the company's shares by 5% on Tuesday. Analyst David Loeb said a regulatory filing indicated that FelCor had two mortgages, secured by three hotels, that had negative equity, and another 14 properties that were "borderline," and by abandoning the properties, the company could boost its equity value by $2 per share.

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