Case Studies
Restructuring Advisory Group
Representative Debt Restructure Case Studies
800-357-8247 or 949-466-0022
For Chapter 11 Email us at Advice@mychapter11.com or Info@restructuringadvisorygroup.com
For CMBS Email us at Restructurngexperts@gmail.com
Case Studies
Chapter 11 Reorganization/$5.4M Financing
Central District of California
Deco Enterprises, Inc….Light fixtures Manufacturer
Chapter 11 Reorganization Debt Restructure/$5.4M Chapter 11 Funding
Synopsis: Restructuring Advisory Group was retained by the principles of the company to procure financing on an industrial building that one of their related partnerships owned in Southern California. We arranged the $5.4 million financing which was approved by the Bankruptcy Court and utilized to pay off the asset based lender in the Chapter 11 case.
Lakeshore Farms…6,000 acre farm in Missouri
Synopsis: $5M in debt on 6,000 acre farm reduced and restructured to a total of $2.5M in debt and paid off over 8 years with no deficiency and a full release of personal guarantees.
Restructuring Advisory Group was retained in August of 2018 by a 6,000 acre farming company in Missouri whose bankruptcy lawyer at that time stated the only option was to liquidate all of the farm assets (as well as liquidate the cross collateralized personal residence) to pay the bank and then file a personal chapter 7 to discharge the remaining debt due under the personal guarantees.
The farmer brought us on board to be his lead strategist and the take over all bank negotiation, all negotiations with his major vendors, all negotiations with his other unsecured creditors, and to formulate a reorganization plan that would save his farm.
We took control of the Chapter 11 and entered into direct negotiations with his bank, the result of which was a consensual restructure of the bank loan whereby his $2.7 million loan was reduced to a $1.4 million loan which under the plan is paid off over an eight-year period.
The other $1.3 million that was owed to the bank out of the original $2.7 million loan became unsecured bank debt under the plan and we renegotiated a consensual payment of that debt so that the $1.3M in unsecured bank debt would be paid 21 cents on the dollar over a seven year period, meaning each year he makes a 3% payment on $1.3M equaling $39,000 per year for seven years for a total of $273,000 paid to the bank over 7 years on the $1.3M in unsecured bank debt . At the end of the 7th year, after payment of the $273,000, the bank forgives the remaining unsecured balance of $1,027,000 ($1,300,000 – $273,000 – $1,027,000) and releases his personal guarantee.
Besides the bank, the farming operation had approximately $2M in unsecured/ Vendor debt. We negotiated the same discount with the Vendors, who get 21 cents on the dollar paid 3% annually for 7 years and waive the $1,58M balance on the debt at the end of the 7 years.
In sum, Restructuring Advisory Group wrote the plan, created the financial models and projections that accompanied the plan, negotiated the cumulative 38% bank loan discount and the 8 year consensual bank loan restructure, as well as the 79% Vendor debt discount and the 7 year Vendor Debt restructure…… that plan was confirmed on January 7th of 2020.
All of the vendors, unsecured creditors and the bank voted yes.
Peppertree Park Villages 9 and 10, LLC…119 unit subdivision
Peppertree Partners, LLC Chapter 11 Reorganization Debt Restructure/$3.5M Chapter 11 Funding
Synopsis: Restructuring Advisory Group was retained to amend the reorganization plan and disclosure statement and to procure financing to fund the reorganization plan.
When we were brought onboard, the plan on file called for the assets to be liquidated to pay the creditors as well as the lawyers resulting if little if any monies to be distributed the property owners.
Restructuring advisory amended the reorganization plan to provide for a $3.5 million loan to pay off the bank and to fund the architectural and engineering required to rezone the property from mercies to residential.
The plan called for the property to be rezoned which resulted in an increase in value from $7 million-$15 million.
Restructuring advisory group arranged the $3.5 million loan which was approved by the Bankruptcy Court, funded the confirmed plan, and save the property from liquidation.
417 Rentals, LLC/75 loan Chapter 11 Restructure
Synopsis: $30M portfolio of 600 single family residences and six multifamily properties encumbered by 75 loans totaling $24M with 12 banks all of whom were seeking to foreclose prior to Restructuring Advisory Group negotiating global loan modifications with all of the lenders.
The firm was retained to analyze the financial viability of the portfolio of over 600 single family homes and a half-dozen multi-family properties and determine the feasibility of a reorganization under Chapter 11 of the Bankruptcy code as well as to analyze and formulate the financial projections and to write the reorganization plan and disclosure statement.
Restructuring Advisory Group was additionally retained by the Principal as the lead strategist in the Chapter 11 to direct day to day strategies, interface with bankruptcy counsel, and to negotiate settlements with the 12 Banks making up the secured creditors of the estate. Restructuring Advisory Group wrote the plan, disclosure statement, formulated the financial projections that are the foundational exhibit for the reorganization plan, as well as negotiated settlements with all 12 banks resulting in the consensual restructure and modification of all 75 loans after which, the Chapter 11 was dismissed
Mr. Wizard
Pennsylvania Carwash Portfolio/Chapter 11 Restructure/$5.9M Funding
28 loans totaling $8.5M ranging in size from $100,000 to $2.4M
$300,000 unsecured debt
Subsequently refinanced $5.9M through SBA Bank financing arranged by Restructuring Advisory Group and negotiated an $890,000 discount as part of the payoff.
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead the bank negotiations.
Prior to retaining Restructuring Advisory Group, the business owner had been told that the only way to emerge from Chapter 11 was to refinance all of the debt and pay the banks off.
Restructuring Advisory Group altered the strategy and re-directed the Chapter 11. The reorganization plan confirmed by the court and conceived of and written by Restructuring Advisory Group utilized the firms decades of experience as Bankruptcy Experts in the structuring and writing of feasible and confirmable cramdown reorganization plans that restructure debt over the banks objections as the negotiating lever to firmly prod the multiple banks and other creditors to consent to a restructure of their mortgages and equipment loans that they initially fought against, but inevitably consented to. When confronted with the fact that Restructuring Advisory Group could and would structure an alternative reorganization plan that would have resulted in more severe treatment of their loans, the lenders backed down, dropped their opposition and approved the plan.
New Palestine Self Storage, LLC
Southern District of Indiana
Office Building
$2M Debt Restructure
Synopsis: 3 year Restructure of $2M debt and stipulated settlement negotiated by Restructuring Advisory Group
Case dismissed by stipulation
Trevor Lloyd-Jones
Southern District of Indiana
$1,7M Debt Restructure
Office Building and retail center
Synopsis: Restructure of $1.7M debt and stipulated settlement negotiated by Restructuring Advisory Group
Ch-11 Case dismissed by stipulation
Lagoon Breeze
Chapter 11 Reorganization/$2M Funding
90% constructed residential subdivision, Oceanside, California with $2M New Financing to Complete Project
$11M First Mortgage subordinated to new Financing
35,000 Second Mortgage
$37,000 Unsecured Debt
Synopsis: Restructuring Advisory Group was retained prior to filing Chapter 11 as the bankruptcy specialist and lead strategist to restructure the construction loan and obtaining financing to complete a $16M real estate development project in San Diego, California.
Prior to retaining Restructuring Advisory Group as its as Bankruptcy Experts, the Company believed that no funds were available to complete the project and that the only option they had was to agree to the bank�s appointment of a receiver and sell the 90% completed units after which their personal guarantees would be executed on to pay deficiencies owing to the bank.
Restructuring Advisory Group altered the strategy and re-directed the Company by proposing that the Development Company would file a chapter 11 and seek bankruptcy court approval of a $2.1M super priority loan (a loan that subordinates existing secured debt) to complete construction of the project. The Board of Directors followed through with the strategy, filed Chapter 11, stopped the appointment of the state court receiver, stopped the foreclosure of the real estate and subsequently filed a motion for and received court approval of a $2.1M super-priority loan to complete the construction of the project, and formulated the reorganization around the new financing, enabling construction to be finished and the sale of the completed units to proceed.
Mammoth LLC
160,000 square foot office building
San Juan Capistrano, CA
$25,5M first Mortgage
$25,000 unsecured debt
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead the bank negotiations on a $25,5M loan that had matured prior to the Chapter 11 being filed. As Bankruptcy Experts, Restructuring Advisory Group instituted a strategy to confront the Bank through an aggressively structured cramdown plan. The cramdown reorganization plan was filed and because the cramdown plan was determined to be feasible and confirmable, the banks relief from stay motion (a motion that would have allowed the bank to foreclose) was continued and trailed behind hearings on the plan and disclosure statement effectively checkmating the Bank. Once the Relief from Stay hearing was checkmated, Restructuring Advisory Group negotiated a consensual commercial loan modification with the Bank which extended the loan for 3½ years and reduced the contract interest rate by 40%.
Clovis Alluvial LLC
Clovis, CA Unimproved Residential and Commercial Subdivision
$4.3M first Mortgage
$35,000 Second Mortgage
$20,000 Unsecured Debt
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead the bank negotiations on a $4.3M land loan that had matured 2 years prior to the Chapter 11. As Bankruptcy Experts, Restructuring Advisory Group instituted a strategy to confront the Bank, through an aggressively structured cramdown plan The cramdown reorganization plan was filed and because the cramdown plan was determined to be feasible and confirmable, the banks relief from stay motion (a motion that would have allowed the bank to foreclose) was taken off calendar. Restructuring Advisory Group then negotiated a commercial loan modification re-writing and extending the loan, and negotiated a waiver of $200,000 in default interest, and 50% reduction in the contract interest rate, and a 95% reduction in the personal guarantees resulting in a stipulation with the bank to dismiss the case.
Colony Woods
$2.5M Debt Restructure on 2 loans
South Carolina Apartment Building
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead the negotiations with US Bank.
Restructuring Advisory Group negotiated a consensual restructure of the loans, wrote the plan and the plan was confirmed with 100% of the creditors voting yes.
Desert Express Trucking
Freight and Shipping Business, Los Angeles, CA
$500,000 secured Debt
$2M @ 16 tractor trailer leases and 35 tri-axle chassis leases
$300,000 unsecured debt
$1M Post Chapter 11 New SBA Financing
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead bank negotiations. The Company utilized the reorganization plan to negotiate a 5 year loan extension with the bank whose loan secures all assets owned by the Company. Restructuring Advisory Group also negotiated lease modifications on truck and trailer leases that encumbered 16 tractor trailers and 35 tri-axle chassis in the fleet. The loan modification and revised leases were memorialized in a stipulation and the creditors agreed to vote for the reorganization plan.
1 Year after the plan was confirmed, Restructuring Advisory Group arranged an SBA loan to buy out the Tractor Trailer Leases and refinance the Secured Debt.
Trenton Court
$2M Debt Restructure
Georgia Apartment Building
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead the negotiations with US Bank.
Lankarani Ltd
Carwash Anaheim, CA
$1.5M first Mortgage
$25,000 Unsecured Debt
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement and to lead the bank negotiations on a $1.5M loan that had matured 1 year prior to the Chapter 11. The Company negotiated a consensual commercial loan modification restructure with the bank resulting in the developer and the bank stipulating to dismissing the case.
Downtown Dennis Real Estate
Washington State Commercial Office Building
$1,025,000 First mortgage
$325,000 Second Mortgage
$10,000 unsecured debt
Synopsis: Restructuring Advisory Group was retained as the bankruptcy specialist to write the reorganization plan and disclosure statement to lead bank negotiations. The Company introduced itself to the secured lender as the Bankruptcy Expert retained to negotiate the commercial loan restructure. It then utilized its bankruptcy expertise to write an initial the cramdown plan and then to use the cramdown plan as the negotiating lever to negotiate a consensual $100,000 discount on the first mortgage and an agreement to amortize the past due taxes over 5 years. The first and second mortgages were then restructured for 60 months at 6% interest only with the original lenders and the terms and conditions of the commercial loan modification were memorialized in a stipulation wherein the Bank agreed to vote for the reorganization plan.
Prior to Restructuring Advisory Group entering the case, redirecting the strategy, and amending the Chapter 11 filing, the structure of the bankruptcy would have enabled the bank to obtain relief from stay (a motion allowing the bank to foreclose) with no feasible opposition.
Town & Country LLC
Brooklyn NY Residential Condominium project
$3.8M first Mortgage
$3M unsecured Debt
Synopsis: Restructuring Advisory Group was retained as lead negotiator and bankruptcy specialist to write the reorganization plan and disclosure statement and to oversee the bankruptcy. As Bankruptcy Experts, Restructuring Advisory Group wrote a cramdown plan that bifurcated the secured loan, reduced its principal by $1.5M, obtained the support of the $3M unsecured creditor, and through the cramdown plan provision, proposed to confirm the plan over the banks objections. Because the cramdown plan that was filed was determined to be feasible and confirmable, the bank came to the table and Restructuring Advisory Group then negotiated a $1.8M discount on the first mortgage and the developer stipulated with the bank to dismiss the case.
Prior to Restructuring Advisory Group entering the case, redirecting the strategy, and amending the Chapter 11 filing, the structure of the bankruptcy would have enabled the bank to obtain relief from stay (a motion allowing the bank to foreclose) with no feasible opposition.
Pelican Bay LLC
38 room hotel in Delaware
$2,5M Debt Restructure
Synopsis: Restructuring Advisory Group was retained as lead strategist and lead negotiator to restructure 3 bank loans with WSFS totaling $2,5M
Restructuring Advisory Group negotiated a consensual restructure of the 3 loans, underwrote the restructured debt for future financing, and prepared all financial exhibits and projections for the plan and disclosure statement
Sea Esta
40 room Motel, Delaware
$600,000 restructure
Synopsis: Restructuring Advisory Group was retained as lead strategist to negotiate a discount on a $600,000 claim by the bankruptcy trustee.
Restructuring Advisory Group negotiated a 43% discount of the $600,000 claim that is payable over a 24 month period at 3% principal reduction per year with a balloon payment in the 24th month.
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Debt Restructure Negotiations and CMBS Debt Restructures That Avoided Chapter 11
Broadway Plaza Holdings
San Diego Office Building/La Jolla Retail Center
$44M CMBS First Mortgage
$100,000 Unsecured Debt
Synopsis: Restructuring Advisory Group was retained as the lead negotiator and bankruptcy specialist to negotiate a CMBS loan restructure on a $44M loan that cross collateralized the developers commercial real estate portfolio and to direct the strategy in the day to day negotiations with the bank and the Master Servicer.
As Bankruptcy Experts, the firm approached the bank and laid out what a cramdown reorganization plan would do to the bank and then utilized that leverage to negotiate a loan restructure that enabled the property owner to avoid bankruptcy. The interest rate was reduced to 4.5% and extended for three years with the proviso that the debt would be serviced as a cash flow mortgage until a 90% occupancy threshold after which the reduced 4.5% interest rate would be payable. In addition to the commercial loan restructure, Restructuring Advisory Group negotiated the waiver of the $4.5M defeasance.
Manhattan Partners LTD
Residential Project, Manhattan Beach, CA
$5.2M construction Loan
$15,000 Unsecured Debt
Synopsis: Restructuring Advisory Group was retained as the lead negotiator and Bankruptcy Specialist to negotiate a construction loan restructure and extension on an 8,000 square foot, $8M custom spec home in southern California whose construction loan had fully funded and matured on a project that still required $300,000 to complete construction.
The firm introduces itself to the bank as the Bankruptcy Expert that would navigate its client through Chapter 11 if a deal could not be struck. It then utilized its� Chapter 11 expertise to lay out what a �cramdown� reorganization plan would do to the bank and then utilized that leverage to negotiate a commercial loan modification and avoid Chapter 11. Restructuring Advisory Group informed the Bank that if the Bank recorded a Notice of Default to foreclose on the property, a Chapter 11 would be filed resulting in a cramdown reorganization plan immediately being filed that would seek court approval of a $300,000 Super Priority Loan which is a loan that would subordinates the banks first mortgage to the $300,000 in new financing. The bank subsequently halted its foreclosure, extended the construction loan and funded the $300,000 required to complete the project and enabled the Developer to avoid bankruptcy and subsequently sell the property.
Advanced Communications Design
Minneapolis MN office Building
$2,320,000 CMBS First Mortgage
$15,000 unsecured debt
Synopsis: Restructuring Advisory Group was retained as the lead negotiator and bankruptcy Specialist to negotiate a commercial loan restructure on the corporate headquarters that was cross collateralized with the personal assets of the Company�s president. Restructuring Advisory Group negotiated a 53% discount on the $2.32M principal balance due and restructured the loan over a 42 month period. In addition to the discounted commercial loan modification, Restructuring Advisory Group negotiated 100% financing from the bank accepting the discount, and a reduction of the personal guarantees.
The property subject to the negotiations was the corporate headquarters of a local company whose loan was cross collateralized with the personal real estate assets of the principals.
The deal that was struck enabled the business owner to avoid Bankruptcy.
R&R Brothers LLC
La Puente, CA Carwash
$2M First Mortgage
$500,000 SBA Loan Secured by Second Mortgage
$35,000 unsecured debt
Synopsis: Restructuring Advisory Group was retained as the lead negotiator and Bankruptcy Specialist to negotiate a commercial loan restructure on a carwash in southern California The firm introduced itself to the bank as the Bankruptcy Expert consulting to the Company and utilized its Chapter 11 expertise to lay out what a cramdown reorganization plan would do to the bank if a deal could not be struck. Restructuring Advisory Group then utilized that leverage to negotiate a loan restructure, enabling the property and business owner to avoid bankruptcy. Restructuring Advisory Group negotiated a 5 year commercial loan modification wherein the $2M first mortgage (the A piece,) was re-written at 4.5% interest. The firm then negotiated a waiver of the $500,000 SBA loan (the B piece) wherein no interest accrued on the $500,000 SBA second mortgage and once the $2M first mortgage was paid in full, the $500,000 second mortgage was forgiven. The Company also negotiated the option to buy the $2M first mortgage for $1.8M on or before the 36th month of the restructured loan as payment in full of both the A and B piece.
Group C Media
Printing Company, New Jersey
$700,000 unsecured debt
Synopsis: Restructuring Advisory Group was retained as the lead negotiator and Bankruptcy Specialist to negotiate the restructure of the major vendor debt on a printing and publishing Company in New Jersey.
Restructuring Advisory Group introduced itself to the vendors as the Bankruptcy Expert that would guide the Company through Chapter 11 if deals could not be cut and then proceeded to negotiate 60 to 80% discounts with the major vendors, which restructured the balance sheet of the client enabling the Company to avoid Bankruptcy
