Kilroy Realty Announces eToys Litigation
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LOS ANGELES, Aug 29, 2002 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE:KRC) announced today that EBC I, Inc. f/k/a eToys, Inc., one of the company's former tenants, has filed a lawsuit against the company seeking return of the proceeds from two letters of credit previously drawn down by the company. The company believes the lawsuit is without merit and intends to vigorously defend the claim.
eToys originally caused its lenders to deliver an aggregate of $15 million in letters of credit to both secure eToys' obligations under its lease with the company and also to secure eToys' obligations to repay the company for certain leasing and tenant improvement costs. eToys defaulted on its lease and other obligations with the company in January of 2001 and subsequently filed for bankruptcy in March of 2001.
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for KRC's current development program include West Los Angeles, El Segundo and coastal San Diego. At June 30, 2002, the company owned 7.6 million square feet of commercial office space and 5.1 million square feet of industrial space. More information is available at www.kilroyrealty.com.
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