Commercial Real Estate Restructuring
Debt Level: $2.6 Billion

Situation

Client owned and operated over 50 commercial real estate properties in a $3.8 billion portfolio held in several funds.
More than 20 lending institutions financed $2.4 billion of senior and subordinated loans for property acquisitions and development.
Over $200 million in fund-level unsecured debt.
A number of debt facilities were financed by large, international bank syndicates.
Certain properties included joint venture equity partners.
Economic downturn had a negative effect on leasing rates, tenant vacancies, and property values.
Funds and properties were experiencing both technical and cash defaults.
Deteriorated credit markets hindered availability of refinancing solutions.

Acted as a financial advisor to the debtor.
Developed and implemented financing plan.
Collaborated with restructuring counsel to develop a bankruptcy strategy in the event a filing became necessary.
Developed and executed a negotiating strategy regarding the lead creditors and their respective syndicates.
Developed and executed a negotiating strategy regarding the joint venture partners and their future commitments.

Provided advice at both an individual property level and portfolio level that addressed such issues as:

Funding of cash reserves for future development costs and operational shortfalls
Covenant triggers
Future pay downs
Cross-collateralization issues
Waterfall of asset sale proceeds
Analysis of future cash flows and debt service
Guarantee minimization matters

Negotiated stand-still agreements with the creditors, which allowed for a comprehensive restructuring program to be developed and implemented.
Worked with the lead creditor and its financial advisors to amend the credit agreement for the majority of the unsecured debt.
Negotiated the refinancing of a portion of the fund-level unsecured debt held by joint venture equity partners.
Assisted in the development of six-year strategic plan to maximize returns for the client and its limited partners.