CHARLOTTE, N.C., Oct. 18, 2011 /PRNewswire/ -- American Asset Corporation (AAC) filed a lawsuit citing breach of contract in negotiations of ongoing debt restructuring. AAC is seeking material damages from Bank of America. The highly diversified real estate company has more than six million square feet under management and a gross asset value in excess of $1 billion.
The lawsuit against Bank of America applies to single asset backed loans in Charlotte and Raleigh, comprising a limited amount of the total assets managed for various partnerships by AAC.
"It has always been our principal to act and negotiate in good faith. However when counter parties do not live up to these principles and violate their commitments we will act. There is no question that we will do whatever it takes in order to protect the equity in our partnerships and the value and integrity of our overall portfolio," said Riprand Count Arco, CEO of American Asset Corporation, regarding the lawsuit.
AAC has acted to reassure its business partners that it will live up to its commitments. The course of ordinary business will not be affected by the litigation with Bank of America, since this is isolated to the assets in question and not to American Asset Corporation as a whole. Litigation will not affect third parties, service companies or brokers, and will not have an effect on the ongoing business of AAC.
"We are a viable force in the commercial real estate market and our reputation is everything. Even though the issue at hand represents a very small portion of our overall portfolio, we had to stand up to Bank of America in order to preserve our good standing. The details of lawsuit can be obtained at the courthouse and we encourage those interested to seek them out," said Riprand Count Arco.
SOURCE American Asset Corporation