Role: Chief Restructuring Officer (CRO)
Client: Private Owner
Business Description: Commercial Income Properties (Macomb County, Michigan)
- Multiple Buildings
- Self-Storage
Critical Issues:
- Five projects in various stages of default
- Projects were over-financed
- Severe negative cash flow
- Several strategic missteps with lenders = Loss of Trust
- Very poor and unreliable accounting records
- Very poor market environment for new tenants
Resolution:
- Negotiated release of liability and deeds-in-lieu on bad properties
- Worked on restructure with original lender, then FDIC, then new lender bank (purchaser of loan from FDIC)
- New lender had difficulty “getting their arms around the numbers” and as a result efforts to structure loan mod. took an excessive amount of time
- Eventually lender elected to foreclose and appoint a receiver due to FDIC insurance profit
- Effectively addressed Courts needs and quashed receivership while holding off foreclosure for about a year
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