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Debt Restructuring Services
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- Client Example #1: Home Builder
- Excessive home inventory materially reduced new homes and the sales price per home.
- Bank failures, FDIC oversight and tightening of the credit markets produced inflexibility in bank negotiations.
- Solution
- Developed a strategic plan for each property that included loan modification agreements, loan refinancing and asset disposition.
- Client Example #2: Condo Developer
- During the conversion to condos of a large apartment complex the market changed.
- The developer elected to abandon the condo conversion strategy and began renting the units as apartments.
- During the shift in strategy, the 1st trust deed holder's loan matured and the client did not have the ability pay down the principal.
- Solution:
- With a material paydown in principal, the 1st trust deed holder agreed to subordinate to a new first mortgage.
- This allowed to client to remove liens and create collateral value to protect the 1st and the 2nd trust deed holders.
- Client Example #3: Commercial Developer
- Large strip center lost its anchor tenant.
- The property had a 1st trust deed and a 2nd trust deed.
- The 1st trust deed holder set a sale for the property with the intent of eliminating the 2nd trust deed holder and the equity's capital contributions.
- Solution:
- Negotiated debtor in possession ("DIP") funding from the 2nd deed trust holder.
- Filed chapter 11 to give the DIP a super priority position and allow the client to secure a new anchor tenant.
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