A proven track record is the best way to demonstrate our strength and depth of expertise. Below are examples of our team’s recent appointments.
Real Estate Workout
Zalis was asked to provide a senior restructuring executive to manage a French property company that was in receivership and owned a recently constructed pharmaceutical laboratory. The shareholders of the property company had been put into receivership following a U.K. High Court Order, and Zalis was asked to intervene by the court-appointed receivers of these shareholders.
The assignment was to manage the ongoing day-to-day activities of the company with a view to maximising the realisation of its assets for the creditors of its shareholders. Zalis took the company into voluntary liquidation with the agreement of its receivers, who were appointed liquidators, and oversaw the sale of the assets and the settlement of the remaining liabilities, against the background of ongoing conflictual and contested court
proceedings in the U.K. between the shareholders of the company and their creditors.
Zalis also conducted a forensic investigation into the historical cash flows of the company, as the U.K. High Court Order had been issued as a result of evidence presented to the court of the fraudulent obtention and use of funds by the company and its shareholders.
2,400 properties sold by PLUTA Rechtsanwalts GmbH
Mr. Stephan Ammann, an attorney at PLUTA Rechtsanwalts GmbH, was involved in the proceedings for the assets of a real estate company with 2,400 residential and commercial properties. Now, almost two years after the opening of insolvency proceedings of BGP Immo-West S.à.r.l. & Co. KG, Stephan Ammann has succeeded in selling all the properties. The properties are located in seven cities in North Rhine-Westphalia and four cities in North Germany, including Duisburg, Essen, Bremen and Bremerhaven.
Most of the real estate portfolio was acquired by the various fund companies belonging to the US American Ares Management L.P. In ten further individual transactions, Stephan Amman sold 674 residential units. The fact that the complete real estate portfolio was successfully sold in under two years shows that an insolvency may be the better option when it comes to making decisions in the interest of the creditors. The key to success in selling real estate portfolios of this size is a close cooperation with powerful and financially sound banks. In these proceedings, the mutual interest in achieving an optimal sale made a decisive contribution to a successful outcome since it ensured flexible portfolio management resulting in the lowest costs and the highest selling price possible.
24 Properties - Ongoing Continued Operations
We were appointed Receiver by the court for the companies and related properties on a court motion brought by a number of the property mortgagees in North America.
We took possession and control of the properties and underlying businesses and continued operations in the businesses that were currently in operation to preserve as much value as possible. Included in the continued operations were four retirement homes, five commercial properties, two private schools and daycares, two multi-unit apartment buildings, a golf course and a number of properties under development and/or were vacant buildings and land. Once all the assets were stabilized, a court-approved sales process, agreeable by all the relevant mortgagees, was undertaken to sell the assets and/or properties.
Globally, the receivership encompasses 12 legal entities which owned 24 properties. The Court Order provided for ring fencing among all the real properties and businesses resulting in a separate estate and operating and liquidating strategy for each property.
At time of writing the receivership is ongoing, however we have sold but one of the properties and the mortgagees and secured lenders have been repaid in full.
PUIG Development Group
We were appointed chief restructuring officer (CRO) for PUIG Development Group. PUIG was a south Florida real estate company, primarily involved in condo conversion projects. We were retained as CRO prior to chapter 11 filing and essentially took over all decision making for the company.
PUIG owned or controlled approximately 25 LLC’s with a significant number of bank and mezzanine lenders.
When we became involved, there was in excess of $300 million of debt and 27 active projects. Our role included reducing overheads, preparing a plan of reorganization, facilitating relations and exchange of information between banks, owners
and investors, and ultimately implementing and executing a plan or reorganization and liquidation for the company.