SOURCE: American Folk Art Museum

April 28, 2008 08:59 ET

The American Folk Art Museum in Negotiations to Sell Air Rights and Grant an Easement

Plans to Seek Bondholders' Consent to Amend Loan Agreement

NEW YORK, NY--(Marketwire - April 28, 2008) - The American Folk Art Museum today announced that it is currently in negotiations with a developer to sell air rights and grant an easement for light and air in connection with its premises located at 45 West 53rd Street, New York, NY 10019. In order to sell the air rights and grant the easement, the Museum intends to seek to amend the Loan Agreement between the Museum and The Trust for Cultural Resources of The City of New York relating to Revenue Bonds, Series 2000 (Museum of American Folk Art) issued by the Trust. Adoption of the proposed amendment to the Loan Agreement will require the consent of bondholders representing fifty-one percent (51%) of the aggregate principal amount of the outstanding bonds.

The solicitation for consent of the bondholders will be subject to conditions to be set forth in a Consent Solicitation Statement that the Museum expects to distribute to bondholders within the next 30 days. The Consent Solicitation Statement will contain important information and bondholders should read it carefully before making any decision. If approval to amend the Loan Agreement is obtained, the Museum currently intends to seek to sell all or a substantial portion of the air rights and to grant the easement in connection with the current negotiations. However, there can be no assurances that these negotiations will ultimately result in the successful sale of such rights and the granting of the easement or that the Museum will have any opportunity to realize value for such rights and easement through alternative opportunities.

Contact Information

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