New City's Lone Star Plan Killed By 2nd Creditor Rejection

New City Residence Investment Corporation (NCRI) announced that the plan to restructure under the umbrella of US investment fund Lone Star was turned down again by major debt holders at the creditors' meeting. Terminating the sponsor agreement with Lone Star Real Estate Fund(US) LP, the failed REIT is to look for a new investor and avoid liquidation. The Daiwa House Industry Co. has shown strong interest in obtaining it.