Recent Case Studies
Closed Auto Dealership
- Defunct auto dealership.
Client quote: “When I first went to CCF, it seemed that the world was collapsing. We had suits coming and going, producing nothing but a cash-drain. We were running out of money and winning nothing. Everything seemed hopeless. Five hours after meeting these people, I knew there was a G-d.”
K,B., Widow who inherited defunct auto dealership.
The challenges: A widow desperately needed help for her closed General Motors dealership.
- Foreclosure. A bank loan on the property was due and was facing imminent foreclosure on a $3 million loan for a property worth less than the mortgage. And, the bank was behaving in a hostile, inflexible manner.
- Bad lease. A leasing-purchase option deal with a new bank-endorsed user was about to be signed. The lease would have had the widow losing more than $600,000 over a six year period, while she would give up the rights to the property and still be responsible to the bank for any hundreds of thousands in deficiencies.
- Excess commission liability. Plus, the lease would have left her with another $300,000 in commissions from the real estate broker, who would be paid twice, one commission for the lease and another for the eventual sale of the property. It was believed that the broker was not operating in the widow’s best interest.
- Unfunded benefits liability. A labor union was seeking more than a half million in unfunded withdrawal contributions resulting from GM pulling her franchise.
- Civil RICO complaint. She had a civil RICO (racketeering) complaint seeking a recovery of over $4 million allegedly embezzled from the company while her husband was dying and thereafter—which caused the dealership to fail. The alleged culprits already had been convicted of warranty fraud against GM.
- Ineffective attorney. Her then-current attorney for the RICO claim had been stalled for over three years and had allowed statutes of limitations slip away on an accountant who had been knowledgeable about the embezzlements and had kept it from the widow and the authorities.
- Running out of cash. She had spent over $1 million in legal fees and got nowhere in over three years.
- Bankruptcy. And, she was within days of being forced to declare bankruptcy, which would have destroyed her capacity for any possible recovery in the RICO claim.
Action plan. In the first 5 hours of being engaged that same day, CCF had a plan for complete relief. The plan included stopping the foreclosure action, halting the union lawsuit, stopping the brokerage liability, getting title to the property “free and clear” of debt and even finding a new potential user for the land, who had expressed an interest in developing using the widow’s interest in the land as equity and future passive income.
The results. In just 29 business days, the CCF team accomplished the following.
- The foreclosure was stopped.
- The causes for a need for bankruptcy all were removed.
- A deal was structured with the bank protecting the widow from a liability for mortgage deficiencies.
- The real estate brokerage commission liabilities were assumed by the bank.
- The bank was positioned to come out whole, with no write-offs, pending the outcome of continued civil RICO prosecution.
- The lawsuit from the labor union was stopped forever.
- An alternative funding source was found to prosecute the civil RICO suit, stopping her bleeding from legal fees.
Skill sets employed in case
- Mortgage financing,
- Market analysis of real estate values and uses,
- Land uses and land entitlement law.
- Knowledge of real estate leases and economics,
- Banking regulations and law,
- Bankruptcy law,
- Civil and criminal RICO prosecution,
- Labor law and negotiation,
- Automotive dealership law,
- Working with the press for maximum media coverage.