According to Bloomberg's online this morning, 11-14-08

Realogy Corp., owner of the Century 21 and Coldwell Banker brands, is at risk of violating the terms of its bank loans and is trying to reduce debt by almost $600 million and stave off default at the Parsippany, New Jersey-based real-estate broker, according to a regulatory filing dated yesterday.

Realogy reported $209 million in losses over the last three quarters amid the worst housing crisis since the Great Depression.

Realogy is giving its noteholders the option to swap their securities at a discount for as much as $500 million in principal amount of new second lien loans that will mature in 2014, according to a news release dated yesterday- according to Bloomberg.

Investors can exchange their securities for as much as 50 cents of new loans. Owners of Realogy's so-called pay- in-kind toggle notes maturing in 2014 can swap their debt at a rate of 47 cents on the dollar.

Will this real estate giant be the next victim of this slumping economy and if so, what does this mean to us as realtors?