AMERICAS DISTRESS DAILY: Black Diamond Seizes Control of NY Mall

Distressed-debt fund Black Diamond Capital Management is seizing control of the Palisades Center shopping mall in West Nyack, New York, after a series of moves that wiped out some creditors and left holders of bonds once rated AAA nursing steep losses. The maneuver puts Black Diamond in control of a roughly 2 million-square-foot mall and cements about $231 million in losses for bondholders.

• Analysts and investors warn more pain is likely in store for holders of CMBS backed by individual mortgages tied to older retail and office properties.
• Some creditors have questioned whether the sale process was conducted in their ...