The business is a state of the art, multipurpose, sport and fitness fieldhouse (the “Facility”) totaling nearly 175,000 square feet, that can accommodate multiple user groups and multiple sports at the same time.
The enterprise raised approximately $28 million in bonds to finance its construction.
The sports facility is owned by a not-for-profit enterprise.
An economic downturn caused membership in the facility’s user groups to decline and utilization of the Facility to decrease.
The decline in revenues and cash flow forced the Facility to default on the development bonds used to construct the fieldhouse.
Fort Dearborn was hired to serve as the court-appointed receiver of the sports facility, a role which involved the following:
–Overseeing the new management team hired to “re-start” the facility’s operations;
–Monitoring the performance of the new management team relative to a court-approved budget; and
–Raising $1.8 million of debt financing to provide management with the capital for a “re-start” of its operations.
Working in collaboration with the new management team, Fort Dearborn accomplished the following:
–Paid down approximately $300k of past due real estate taxes that had been sold to a real estate tax buyer;
–Paid approximately $700k towards a court-approved settlement with unpaid contractors who held mechanics liens against the Facility;
–Issued monthly cash disbursements to finance the operations until the Facility generated enough cash flow to support its own operations; and
–Provided accountings to the court on the Facility’s operations and performance relative to budget.
Fort Dearborn served as the court appointed receiver, overseeing a new management company that “re-started” the facility’s operations and sports programming.
Fort Dearborn secured a $1.8 million financing by issuing a receiver’s certificate, to finance the re-start of business operations.