Organization
Multi-Million Real Estate, Property Management and HVAC Business
|
Challenges
- Operating losses of
over $2 million per year
- Line of credit frozen
by the bank
- In default of loan
covenants
- Shut down of the
Company estimated to be within the next 60 days
|
Approach
- Performed a viability
analysis of the Company
- Identified the key
issues and developed a turnaround plan
- Developed strategies
that reduced the breakeven point of the major business unit
- Designed and
implemented an out-of-court restructuring of the bank debt
|
Results
- Achieved operating
profit of $2.9 million in the first year
- Bank debt reduced from
$27 million to $11 million over 18 months
- Cash in bank increased
from zero to over $2.7 million
|
Organization
$5 Billion Telemarketing Mortgage Originator & Lender
|
Challenges
- The
Company’s top management style and organization structure
caused significant tension with GMAC Mortgage Corporate, the
Company’s corporate parent
- GMACMC wanted to
replace the Company’s five top executives but not disrupt the
Company’s operations
|
Approach
- BBK personnel replaced
the five top executives of the Company and served for nine months
- New & open
communication and reporting processes were developed and implemented
- Policies and
procedures were documented
|
Results
- No interruption or
loss of production occurred during the transition
- Profitability and
volume of mortgages was increased
- Retention of the
Company employees was stabilized
- An orderly transition
to the new management team was achieved
|
Organization
European bank with $325 Million Senior secured and $100 Million
Mezzanine Debt in Construction Finance Borrower
|
Challenges
- Borrower held collateral on real estate developments in 7
states and held liens on 7,000 individual property parcels
- Within 90 days of funding senior secured debt borrower
defaulted and threatened to walk away
- Quality and value of collateral was seriously deficient to
the point mezzanine and senior secured facility were likely impaired
|
Approach
- Remained on site in monitoring role
- Developed and implemented action plan to enhance prospects
of recovery
- BBK retained to augment Receiver’s efforts and
provide continuity
|
Results
|
Real
Estate
Professionals
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to BBK Industry Expertise
