Post season, the operator of 7 water parks in the entertainment industry found itself in sudden financial distress due to construction cost overruns at two new water parks.
The operator was unable to pay meaningful amounts of its debt service, which consisted of a revolver and a term loan and completely depleted its $5MM cash reserve to cover construction cost overruns.
Due to prospective valuations that were well below market, the lenders would not approve the sale of the parks.
The 1st lien lender moved toward foreclosure.
Advised the operator to supplement its cash flow using receipts from online membership sales.
Successfully negotiated an agreement between the lenders that allowed the 2nd lien lender to assume the 1st lien loan obligations in full.
The 2nd lien lender agreed to a consensual workout in which it took control of the assets and became the new owner.
Working collaboratively, loans were increased slightly as needed to enhance working capital.
The 1st lien lender was paid in full.
The 2nd lien lender took over the parks.
The parks were eventually sold at far less capital loss than projected had a foreclosure occurred.
The original owner/operator was able to walk-away with only a potential claw back on future earnings and it was relieved of its guarantees.
Loading...
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores. Nam libero tempore, nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda sed do eiusmod tempor incididunt ut labore et nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores.
Similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.
Nam libero tempore, nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda sed do eiusmod tempor incididunt ut labore et nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores.
Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores qui dolorem ipsum quia dolor sit amet, consectetur.
Quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda.
Aut rerum necessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus.
Consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat voluptatem. Ullam corporis suscipit laboriosam, nisi ut aliquid ex ea commod.
Use Builder Contact addon to add a contact form below.
Reload document 
Open in new tab 
