Efforts by out-of-money European investors has thwarted recovery efforts by senior bondholders in troubled CMBS deals, according to a Fitch Ratings report published today.

For a CMBS deal structured without a special servicer, a junior lender will try to use legal means to prevent in-the-money investors from taking certain actions. Such was the case in the Alburn Real Estate Capital transaction, the Fitch report said.

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