Unlike the Minto and InterRent takeouts, Clarke’s (CKI) $1.1B acquisition of Ravelin (formerly Slate Office) is a distressed situation - with falling occupancy and increasing leverage…

… pushing the target towards bankruptcy. Clarke CEO George Armoyan’s family office is a secured debt holder, allowing them to dictate restructuring terms - which wipe out equity holders…

… and force conversion on ~$160M of convertible debentures, taking the pro-forma entity’s loan-to-value ratio below 65% (from 94%).

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