Case Study
Serving as CRO, Advising a Bankruptcy, Managing Assets, and Conducting Distressed Workouts
The Situation
A real estate investment and management group with over $700MM in assets comprised of raw land, hotels, partially complete multi-family, and single-family residences encountered significant portfolio distress leading to bankruptcy across 48 Secured Loans/REO in 15 states (97% non-performing). The Company had a $65MM re-discount lender (WFCF) and $700MM Junior Note Holders.
Services
Interim CRO
Asset Management
Sell-side Advisory
Workouts
The Execution
- Navigated the enterprise through a successful bankruptcy and restructuring.
- Served as asset manager on behalf of the liquidating trust to maximize value of the remaining assets upon emergence from bankruptcy.
- Managed the Company’s daily operations during the restructuring – including property assessments and value, third party relationships, tax obligations, insurance coverage, strategic property and asset sales, and foreclosure execution.
- Managed the workout and disposition of a portfolio comprised primarily of negative carry assets throughout the US over a 30-month period.
- Developed a strategy for each individual asset, including the capitalization, risk management, and execution of that strategy.
- Created and maintained a customized stakeholder reporting system.
The Results
As CRO and Asset Manager for the Liquidating Trust, our team successfully facilitated dispositions, foreclosure, litigation, loan modifications, and the debtor’s bankruptcy. We also managed value preservation in liquidation by obtaining control and implementing asset-specific strategies.