Morgan Stanley (MS) May Hand Over The Keys Of $2.4 Billion Japanese Hotel Chain

According to a report by the Wall Street Journal, Morgan Stanley (NYSE: MS) may hand over the keys of the $2.4 billion Japanese hotel chain to creditors when the debt falls due in April. Morgan Stanley was one of the most aggressive players in the Japanese real estate market. But as property prices have plummeted, it is facing difficulty in refinancing the debt.

Citigroup, Inc. (NYSE: C), and Japan's Shinsei Bank Ltd. are among the lenders that financed the Japanese hotel purchase. Lenders are demanding Morgan Stanley put more equity in the property as security. However, Government of Singapore Investment Corp., which is also one of the lenders, has expressed interest in taking over the hotel chain from Morgan Stanley.