Restructuring Commercial Real Estate Retail Concept Developer
Debt: $560,000,000

Situation

Client was in various stages of development with eight distinct properties each structured as a separate LLC. Properties included over 3 million square feet developed and leased and nearly 5 million square feet of undeveloped land in the southwest.
11 bank institutions financed these properties with over $560,000,000 of senior and subordinated loans.
Select properties included joint venture equity partners.
Various phases of construction from undeveloped land to nearly complete to fully leased up properties. Estimate to complete matters complicating the dynamics.
Client's tenants were national retailers some which filed Ch. 11 bankruptcy.
Principals/Owners had guaranteed the collective indebtedness beyond their personal means.
Various properties were experiencing a series of both technical and cash defaults.
Maturity dates cascading over the following 18 months.
Valuations of most properties were below debt levels on both an appraised and market basis.

Acting as Financial advisor to Debtor.
Worked with restructuring counsel to develop and implement a refinancing and bankruptcy strategy (if needed).
Developed a bank negotiating strategy including prioritization strategy which identified creditors to restructure thus building momentum to comprehensive solution.

Provided advise both an individual property level and portfolio level that addressed issues as:
Deficiencies
Covenant triggers;
Initial paydowns;
Cross collateralization issues;
Pledging of profit interests;
Go forward borrowing costs – minimizing LIBOR impact;
Guarantee minimization matters
Generated a five year financial plan designed to address property specific and portfolio level matters including covenant triggers, paydown matters, and cross defaults.

Avoided bankruptcy, which was a client preference throughout the negotiations.
Negotiated stand-still agreements with the host of creditors allowing for a comprehensive restructuring program to be developed and implemented.
Negotiated refinancing agreements for each property which included five year extensions through 2014.
Minimized upfront remargin payments to preserve adequate capital resources to support, sustain, and optimize property performance through exit.