Sale Process Convinces Lenders to Restructure Debt

Construction & Real EstateLitigation SupportTurnarounds & Restructuring

600M

Annual Sales

450M

in Debt

Opus Northwest, Minneapolis Minnesota

Challenge

Full-service real estate development and design-build construction company with 56+ year history. $600 million sales. $450 million debt. Diverse portfolio: 17 projects across industrial, office, retail, condominium and multi-family developments.

  • Company was in default given cross-collateralized nature of its project loans and line of credit.
  • The Company was in discussions with banks regarding forbearance agreements.
  • The Company required solid, new ownership to recapitalize the firm.

Solution

  • MorrisAnderson was initially engaged to create an Offering Memorandum and sell the business and real estate portfolio.
  • The client increased the scope by asking MorrisAndersonto advise and participate in project loan renegotiations with the banks and advise regarding Board changes and relationship with Parent.
  • MorrisAnderson analyzed and consolidated the company’s long-term cash flow projections to help understand the value and liability of each asset and advise the company on the appropriate negotiating stance with its related lenders.

Results

  • MorrisAnderson worked with the highest bidder to sell the construction business.
  • MorrisAnderson was awarded the mandate to also sell the real estate portfolio and ran a successful process surfacing over a dozen bidding parties.
  • Sale process results convinced bank group to accept a longer term debt restructuring acceptable to the Company on the real estate portfolio.

Contributors