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Sale Process Convinces Lenders to Restructure Debt

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

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Home·Sale Process Convinces Lenders to Restructure Debt

The Situation

Full-service real estate development and design-build construction company with 56+ year history. $600 million sales. $450 million debt. Diverse portfolio: 17 projects across industrial, office, retail, condominium and multi-family developments.

  • Company was in default given cross-collateralized nature of its project loans and line of credit.
  • The Company was in discussions with banks regarding forbearance agreements.
  • The Company required solid, new ownership to recapitalize the firm.

How We Advised

  • Our experts were initially engaged to create an Offering Memorandum and sell the business and real estate portfolio.
  • The client increased the scope by asking our team to advise and participate in project loan renegotiations with the banks and advise regarding Board changes and relationship with Parent.
  • We analyzed and consolidated the company’s long-term cash flow projections to help understand the value and liability of each asset and advise the company on the appropriate negotiating stance with its related lenders.
  • We worked with the highest bidder to sell the construction business.
  • Our team was awarded the mandate to also sell the real estate portfolio and ran a successful process surfacing over a dozen bidding parties.
  • Sale process results convinced bank group to accept a longer term debt restructuring acceptable to the Company on the real estate portfolio.

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.

Key Contact

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