Chief Restructuring Officer
Lenders understand that our goal is a successful resolution with a motivated borrower. We work with the lender to mitigate loan and property issues and with borrowers to understand the motivations of the lender. Due to our involvement, litigation is almost always avoided except in instances where borrower cannot really propose a viable workout plan. Atlas Capital Advisors uses a non-confrontational and open approach ensuring that both sides achieve a positive outcome without the need of litigation.
Atlas Capital Advisors has longstanding relationships with most Master and Special Servicers, many financial institutions, private equity firms and high net worth investors. We approach lenders and servicers in a non-threatening manner and ensure that both sides work together to obtain an outcome that benefits both parties. Our goal is to avoid costly and time consuming litigation that detracts both sides from achieving a favorable outcome. In many cases we are well known to Lender’s counsel and have excellent relationships with them.
At Atlas Capital Advisors, we are finding that many banks are anxious to work with motivated borrowers who are solution oriented. We are adept at ensuring that banks and borrowers do not let personal differences keep the parties from an outcome that is economically and legally advantageous to both sides.
L enders and their attorneys have recommended us to borrowers who they felt were either not equipped to handle their negotiations, or to ensure that with our help both sides would attain a relatively quick and favorable outcome.
We can negotiate a discounted pay-off, a modification or forbearance, and if there is little economic incentive to keep the property, assist in ensuring the lender takes control with minimum financial impact.
The lender may have their own estimate of value and they will need to be convinced that working with the borrower is economically advantageous. This gets easier if the borrower has a proven track record of being open and honest with the lender and is seen by the lender as an entity that adds value to the process and works with a respected firm. We work with lenders in a non-threatening manner that ensures we are seen as adding value to the negotiations.
Negotiations can sometimes become emotional. We are successful due to the measured approach we take while working through challenging situations. We are adept at keeping borrowers, lenders, buyers, sellers, partners and investors, focused on the consummation of the deal.
Court Appointed Provisional Directors
P rior to throwing in the towel and allowing the lender to take control of the asset via liquidation, auction, receivership or bankruptcy, the appointment of a Chief restructuring officer may prove highly effective and very beneficial to allowing the borrower more time to turn the company around. Many times, lenders and outside investors have lost faith in the partners and need another set of eyes and ears to ensure that decisions being made are done with transparency and a semblance of order. Should all turnaround avenues fail, the CRO is there for a smooth transition and orderly liquidation that in most cases is far less expensive than allowing the process to be handled by a receiver or U.S. Trustee.
There are times when equal partners and investors can’t agree and due to a stalemate most essential company functions cease., business essentially stops and lenders move in to protect their assets. Litigation ensues. In many of those situations it may benefit the parties to agree to the appointment of a court appointed provisional director to assist the partners in reaching agreement while allowing them to maintain control of their company. This is preferable to the appointment of a Receiver as when they are appointed the partners no longer have a say in how the company is run.