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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