The Wall Street Journal reported Oct. 30 that Credit Suisse Group, acting as agent for the lenders, Wednesday recorded a notice of default against the project starting the foreclosure process.

Neither Candy & Candy nor Credit Suisse would comment on the action to the Journal or to The Courier.

The recording does not preclude future agreement on refinancing or extension of the loan.

The news of the formal start of foreclosure came on the same day that Candy & Candy announced a swap with their partner, Kaupthing Bank, gaining control of the project.

The Candys acquired control of 9900 Wilshire in exchange for their part interest in their high-profile NoHo project planned for the former site of Middlesex Hospital in London’s  West End.  

The London project, now valued at around £100 million (about $164 million), carries debt of £202 million (about $331 million).

The swap remains subject to approval of their lenders.

"The situation is currently being resolved and conversations are taking place with the syndicated banks in the USA," a spokesperson for CPC said. "We are optimistic that this will be finalized soon.:

The Candys are attempting to refinance the project and continue in charge.  Nick Candy earlier told The Courier that no financing is available for condominium projects today, a situation that is likely to continue.   Nonetheless, obtaining agreement with Kaupthing for control of the project is major step forward in Candy & Candy’s efforts.