Large and Complex Debt Restructuring

Problem:

• This builder had large land holdings in a resort-type area but was being crushed under heavy debt.

• The previous President, who also served as the CFO, had resigned being convinced that there was no way out.

Solution:

• When I reviewed the holdings, I believed there was a way forward because they had an incredible product in a stunning location; and if you have a great product, there’s usually a way to make it work.

• We implemented Builder Navigator software, providing robust inventory reporting and cash flow forecasting, which boosted our confidence in the company’s future.
• I crafted a comprehensive forecast and strategic solution, demonstrating that while the existing debt was unsustainable, a reasonable path forward existed.
• Through negotiations, we convinced the debt holder to reduce the debt by a substantial 40% (equivalent to $18 million).
• Despite seemingly insurmountable odds, we found a strategic way forward. The builder has since achieved remarkable success, even garnering prominent local business press coverage years later due to the strength of these land holdings.