The Versailles Court of Appeal has put an end to a legal battle between borrowers and bondholders of Coeur Défense with a ruling that restores protection to the owners of the flagship office tower at La Défense.

Last week the Court of Appeal confirmed an earlier decision by the Cour de Cassation in favour of an extension of the protection plan proposed by Coeur Defense's owner.

The 182,000 m2 complex, which was acquired by Lehman Brothers and Atemi for EUR 2.1 bn in July 2007, has been at the centre of a conflict between the owners and the debt holders since Hold, the special purpose vehicle controlling Coeur Defense, filed for court protection in September 2008.

The protection plan grants owners a further two years until 2014 for the repayment of a CMBS vehicle - Windermere XII - worth over EUR 1.5 bn. As a result of the court's new decision, creditors will no longer have the right to seize the property in case owners don't meet payment obligations.

Coeur Defense, which is currently 20% vacant, has shed almost 50% of its value over the past years.

According to press reports, the lion's share of the Windermere XII CMBS, secured by Coeur Défense, is owned by Germany's central bank Bundesbank and is expected to be put for sale in the near future. Other bondholders include BNP Paribas, AXA, and Dexia.

Last year, private equity group Perella Weinberg is believed to have bought EUR 275 mln of bonds secured against the asset from Bundesbank.