Case Study Restaurant Building

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Rescued Sports Bar

  • $2 million loan on bankrupt in-town single-user building housing a sports bar restaurant.

The Challenges.

  1. A restaurant and its building were in foreclosure with a hostile bank and
  2. With an angry ex-partner, who wanted additional collateral from the client worth far more than the money owed,
  3. A judgment for a sheriff’s sale was ready from the ex-partner, for debt owed him and with interest accruing,
  4. Debt of $1.5 million to the bank,
  5. The bank was under pressure from the regulators for bad loans,
  6. Past due sales taxes of $500 thousand from the prior management,
  7. An inept bankruptcy attorney, who could get nothing done in two years,

Action plan.

  1. The sheriff’s sale had to be stopped,
  2. Forbearance had to be arranged from the bank,
  3. The oppositional former partner had to become reasonable,
  4. Time had to be created to be given to the owner to fully execute his recovery plan, which was already in progress and working.

Results. CCF came in and in less than three months:

  1. The sheriff’s sale was stopped, for at least three years.
  2. The former partner became reasonable and is allowing the client three years to repay a settled amount, with no interest accruing and no additional collateral.
  3. The client had time to turn around the property, which is now very profitable—after debt service and to handle a payment plan for the outstanding taxes.

Skill sets employed:

  1. Mortgage financing
  2. Market analysis of real estate values and uses,
  3. Banking regulations and law,
  4. Bankruptcy law,
  5. Civil RICO prosecution,
  6. Private investigations,
  7. Deft negotiation skills.

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