RAIT Financial concludes strategic, alternative review process
RAIT Financial Trust announced that a special committee of RAIT's independent trustees delegated the authority by RAIT's Board of Trustees to manage RAIT's previously announced review of strategic and financial alternatives for RAIT has concluded this review. This review, conducted with the support of financial and legal advisors, was deliberate and comprehensive in its evaluation of a wide range of potential alternatives which included, but were not limited to, (i) refinements of RAIT's operations or strategy, (ii) financial transactions, such as a recapitalization or other change to RAIT's capital structure and (iii) strategic transactions, such as a sale of all or part of RAIT. At this time, the Board has determined that this review did not identify a suitable strategic or financial transaction with another counterparty that was preferable to the steps being reported now. As a result, the Board, after considering the recommendations and advice of the Special Committee, RAIT's management and legal and financial advisors, determined that RAIT should take steps to increase RAIT's liquidity and better position RAIT to meet its financial obligations as they come due and to continue to operate as a going concern. These steps include, but are not limited to: The cessation of RAIT's lending business along with the implementation of other steps to reduce costs within its other operating businesses; The continuation of the process of selling RAIT's property portfolio while servicing and managing RAIT's existing commercial real estate loan portfolio; and the engagement of a financial advisor to assist and advise RAIT during this process.