construction Loan - Borrower Representation: retail portfolio

• Renuta was engaged by the owner of a 6-property retail portfolio with over $250 million in debt to several major banks

• Three of the loans were construction loans with personal guarantees and cross collateralized against other assets.

Restructuring

• The portfolio, as per Renuta’s underwriting, had little to no equity value

• The client’s objective was to keep the company operating while retaining as many of the assets as possible

• Renuta negotiated two standstill agreements with the lenders. Over the next three months, Renuta negotiated individual cash flow mortgages with incentive management clauses

Outcome: The Borrower invested limited capital, retained property management and leasing fees, and retained an equity upside in improved performance over the next 5 years. The rates and terms of the mortgages improved significantly while the bulk of the guarantees remained in place