NATURE OF ASSIGNMENT:
Primary: Company Services / Turnaround Management
Primary Industry: Real Estate & Construction
Company: Commercial Real Estate Developer
Focus Scope: Focus Management Group was retained by a large regional commercial real estate developer with approximately $1 billion in senior debt that was facing a liquidity crisis due to its inability to sell land and continue the development of commercial properties in the current marketplace.
Tasks Performed:
- Rapidly reviewed the Client’s operations, projections and capital structure of each of its properties/businesses
- Generated a restructuring plan for the Client’s properties and businesses that demonstrated the sustainability of the business models
- Created a new long term cash flow forecasting model for the client
- Revised daily cash monitoring systems and assisted in restructuring daily cash management platform
- Determined strategies for refinancing the associated senior debt on both an individual and consolidated basis
- Assisted the Client in the negotiation of support for the restructuring plans with the Client’s incumbent senior secured lenders
Results:
- The Client’s engagement of Focus has provided clarity for both the developer and its bank group regarding the current and future cash flows for the projects.
- The Client was able to successfully negotiate forbearance agreements with its major lenders.
- In addition, Focus has assisted the Client with development of new strategies to present to all affected constituencies and has guided management to escalate its prioritization of effort.