Company Overview
The Facility is a state of the art, Midwest sports facility, totaling over 100,000+ square feet.
The Facility raised approximately $18 million in bonds to finance its construction.
Designed for the needs of its key customer, the Facility is a special purpose sports Facility that can only accommodate a limited number of sports.
Engagement Overview
Significant management turnover, inconsistent operating strategies among management teams, and difficult economic conditions resulted in the Facility defaulting on its mortgage bonds and its past due real estate taxes being sold. When FDP was hired, the Facility did not have enough cash to operate through its seasonally slow summer months and was facing a looming deadline to satisfy nearly $1.0 million in past due real estate taxes.
FDP was initially engaged to market the Facility for sale, a role that quickly evolved into monitoring management and the operations of the Facility:
–FDP reviewed and oversaw management’s operating strategy;
–Monitored the Facility’s cash disbursements;
–Identified areas for potential cost savings; and
–Created quarterly cash flow forecasts for the Facility and provided periodic reporting to the indenture trustee and ad hoc bondholders committee.
Working in collaboration with the owners of the Facility, the indenture trustee, and the ad hoc bondholders committee, FDP accomplished the following:
–Obtained emergency, interim financing to keep the Facility operating until it could operate under the strength of its own cash flows;
–Prepared an information memorandum and approached a targeted list of industry and financial buyers;
–Developed a data room for due diligence and communicated the Facility’s operating results to potential purchasers;
–Working with the owners and the trustee’s attorney,FDP developed an approach utilizing a “stalking horse” bid in the foreclosure process; and
–Guided the owners, board and management of the Facility through the foreclosure process.
Results
Fort Dearborn secured a purchaser for the Facility through a foreclosure process.
Worked with the new owner of the Facility to transition the operations and minimize disruption to customers and employees.