From Footnoted.com:
Abandoning Property in Default Contributes to $46-Million Net Income
Back in early August, we footnoted the decision by Hyatt Hotels (H) to abandon the Hyatt Regency Princeton after falling behind on the mortgage. At the time, we contrasted the corporate decision to abandon a property it no longer wanted with similar decisions that countless Americans are making about their homes. Now we know how the decision to walk away affected Hyatt: It made money, at least on paper. Here’s how the company puts it in the 10-Q it filed on Wednesday: “A pre-tax gain of $35 million was realized on extinguishment of the $45 million secured mortgage debt. … The pre-tax gain of $35 million has been recognized in other income (loss), net on our condensed consolidated statements of income (loss).” Click here for the full story.