Case Studies

Debt Restructuring and Refinancing Of Community Centers

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

Read More close Created with Sketch.
Home·Debt Restructuring and Refinancing Of Community Centers

The Situation

Multi-location community centers. $25 million in sales. $58 million debt incurred to build a state-of-the-art facility and to refurbish existing facilities.

  • Donations and returns on investments in endowments (primary source of repayment) had fallen significantly below projections.
  • Ten donors accounted for more than 90% of the capital raising capacity.
  • Incurred debt to build/refurbish facilities with a plan for continued donations and investments in endowments.
  • The recession led to a declining trend that underachieved projections for operating revenues, donations, and the loss of principal endowments; the decline in interest rates resulted in lower returns on remaining investments.
  • The senior lender filed a lawsuit after the borrower defaulted on payment and made unsuccessful attempts to discuss restructuring the debt.
  • The structure of the debt was multifaceted, comprising a line of credit, bonds, an interest rate swap agreement, and a letter of credit.
  • Additional factors unique to non-profits include a significant reliance on cash from donors, an inherent absence of equity owners, and major donors significantly impact the situation and solutions.

How We Advised

  • Ensured management was teamed with financial, legal, and public relations advisors to consider all options.
  • Ensured restricted assets were appropriately and distinctly separated from unrestricted assets.
  • Developed long-term cash flow forecast to illustrate the feasibility of options with management, key donors, and lenders.
  • In each scenario, our experts ensured all stakeholders were identified, and roles/impact were considered.
  • Led negotiations with the lender, obtained a standstill on litigation while negotiations continued in good faith.
  • Provided assessment of the situation along with options and recommendations for attainable solutions.
  • Ensured the Board was informed and that major donors were actively engaged in exploring scenarios.
  • An out-of-court resolution was devised that was satisfactory to the lender and the client.
  • The debt was restructured so as to allow the lender to exit the debt.
  • All of the facilities and services continued uninterrupted during this process.
  • Secured lender recovered $45 million of $58 million, significantly above lender valuation.
  • The client paid the majority of the settlement in cash due to a secondary fundraising campaign and a new bank loan.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Debt Restructuring Services 
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures. 

 

> Turnaround and Restructuring Services 
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation. 

Back to top
J.S. Held

Headquarters

50 Jericho Quadrangle
Suite 117
Jericho, N.Y. 11753
+1 516 621 2900
[email protected]

Markets Served

Geographies

Industries

Media Relations

[email protected]

 

© 2025 J.S. Held LLC.  

All Rights Reserved.

J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved.
J.S. Held

Headquarters

50 Jericho Quadrangle
Suite 117
Jericho, N.Y. 11753
+1 516 621 2900
[email protected]

J.S. Held, its affiliates and subsidiaries are not certified public accounting firm(s) and do not provide audit, attest, or any other public accounting services. J.S. Held is not a law firm and does not provide legal advice. Securities offered through PM Securities, LLC, d/b/a Phoenix IB or Ocean Tomo Investments, a part of J.S. Held, member FINRA/SIPC. All rights reserved.
Markets Served

Geographies

Industries

Media Relations

[email protected]

 

© 2025 J.S. Held LLC.  

All Rights Reserved.

Areas of Expertise
 
Technical & Scientific Strategic Advisory Financial Investigations, Valuation & Risk Digital & Data Artificial Intelligence (AI)
Markets We Serve
 
Aerospace & Aviation Agriculture Cannabis Construction Consumer Products & Services Cyber Education Energy & Power Financial Services Food & Beverage Government Healthcare Industrial & Manufacturing Insurance Private Equity Real Estate Retail, Restaurant & Hospitality Technology, Media & Telecommunications Transportation Infrastructure
Insights
 
White Papers & Research Reports Perspectives Educational Seminars & Events
About Us
 
Culture & Community Careers Our Experts Our Locations Leadership News Contact Us
Our Experts
close Created with Sketch.
Choose your language
Choose your region
Select Location · Submit Assignment · Search
 
Home Areas of Expertise Markets We Serve Insights About Us Our Experts