Serving as Trustee and Supporting Sales, Liquidation, and Litigation
The Situation
A developer and operator of vacation ownership resorts and developed/undeveloped real estate properties, and a provider of consumer financing to purchasers of leisure ownership interests and land parcels through its wholly owned subsidiary was facing working capital and liquidity issues, recent loan defaults, delinquent consumer notes, title problems in its land sales division, a NASDAQ de-listing, and difficulties securing long-term financing. The Company filed Chapter 11 to help preserve the assets and values of its operations and to protect the interest of its key constituencies, including employees, suppliers, customers, and creditors. The Company also aimed to secure Debtor-in-possession financing as part of the reorganization filing. The President/CEO and the Chairman of the Board both resigned from the Board two days later. Mackinac Partners (acquired by Accordion in 2021) was engaged so serve in the positions of Chapter 11 Trustee (and subsequent Chapter 7 Trustee), as well as financial advisors to the Trustee.
Services
Chapter 11 & 7 Trustee
Sell-side Advisory
Litigation Support
Dispute Advisory
The Execution
- Managed a structured liquidation of the Company’s properties and assets, allowing homeowners to continue to use the resorts without interruption during the sales processes.
- Facilitated the sale of the Company’s eight resorts, associated mortgage receivables, a golf course, and numerous land parcels.
- Marketed, negotiated, and closed transactions that exceeded $100MM in value in less than six months.
- Provided litigation support and dispute advisory services.
- Investigated various adversary actions including litigation against two former members of the Board of Directors, the Company’s former auditor and former outside counsel.
The Results
Serving as Trustee and financial advisor, our team helped retain the value of assets and successfully marketed, negotiated, and sold properties and assets exceeding $100MM. We also were able to investigate adversary actions and provide litigation support, securing another $7MM in settlements.