Pacific Office Properties Trust Inc., a real estate investment trust that owns buildings in Honolulu and in the Western U.S., is disputing an assertion that its operating partnership has had a credit default.

The Los Angeles-based company said its operating partnership, Pacific Office Properties L.P., was told by KeyBank National Association that an “event of default” existed with respect to a credit agreement.
The bank told the partnership that the default relates to the calculation of a financial covenant, and that no additional borrowings under the agreement would be available, according to a Pacific Office filing at the Securities and Exchange Commission.
The partnership has borrowed $3 million under the agreement. Pacific Office said it does not agree with KeyBank’s assertion or that a default had occurred. It said it is continuing to have discussions with the bank to resolve the situation.