Organization
$1.2 Billion Mortgage Bank & Real Estate Mgt. Company
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Challenges
- Operating losses and deteriorating sub-prime mortgage
market caused the Company to run out of liquidity
- Operations/controls were in chaos
- Fraud was alleged
- The Company ceased operations when its warehouse bank
lenders refused to provide additional funding
- The Company’s clients and creditors were put at
significant risk
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Approach
- Michigan’s Financial Institutions Bureau named
BBK’s Chairman as the Company’s Conservator
- BBK restored operations and established controls of the
remaining assets
- Designed and implemented a communications program
- Determined the Company was not viable and filed for a
liquidating Chapter 11
- Obtained DIP financing to fund an orderly liquidation
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Results
- Critical loan servicing operations were restored
- Assets of the real estate operations were sold for the
benefit of the Estate
- Legal actions initiated against various insiders, D&O
carriers, retained professionals, insurers and former auditors
- Chapter 11 Plan confirmed
- Liquidating agent retained
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