New York College Campus
Situation: We restructured $100 million of debt as representative to a group of banks which had collectively financed a New York College.
Strategy: The restructuring involved the sale-leaseback of a number of properties and outright sale of several land parcels. In addition, we restructured the secured bank debt in order to establish payment arrangements with unsecured creditors and ensure the college would remain a going concern.
Resolution: The detailed workout provided the college immediate working capital while reducing outstanding debt and ultimately restored the school’s financial stability. Today the College is financially sound with student enrollment of over 15,000.
50,000 sf Indoor Shopping Mall
Situation: This stabilized property was encumbered by a performing first mortgage lien. As a result of a borrower criminal conviction, the federal government seized the borrower’s real estate assets.
Strategy: The government appointed a trustee to liquidate the portfolio. This resulted in all debt service payments being stopped. Our strategy was to litigate with the trustee to obtain adequate protection during the government’s investigation and liquidation. After eighteen months, we successfully arranged a sale of the property and repayment of the bank debt.
Resolution: After extensive negotiation and litigation with a trustee whose interests were not aligned the bank lender’s interests, we arranged for the principal to be repaid.
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