Opportunities for creating value through restructuring are necessary as a result of economic uncertainty, changes in technology or manufacturing, heightened marketplace competition, regulatory requirements, taxes, shifts in interest rates, changes in business practice efficiency and performance. Navigant Capital Advisors’ credentialed Restructuring professionals have multidisciplinary backgrounds with experience from international accounting firms, merchant and investment banks, private equity and hedge fund firms, and senior operating management. From a broad array of industries, our team has the expertise to evaluate and customize a restructuring program resulting in sustainable value.
Our financial, operating, and legal acumen helps clients improve operating performance, restore and enhance profitability, and maximize recoveries. We assist companies who are in distress or affected by insolvent entities through the entire lifecycle of a restructuring: from a front-end assessment, to effective decision-making support, through the implementation of transaction solutions.
GMAC ResCap is the second largest independent residential mortgage lender in the U.S., originating first and second lien residential mortgage loans through a nationwide network of retail offices, direct lending centers and internet sites. Our professionals were retained to create and execute a plan to mitigate the negative impact caused by the downturn in the subprime and homebuilding market. NCA worked with management to create and execute a detailed risk mitigation plan and managed total aggregate exposure in excess of $15 billion including the orderly liquidation of the largest mortgage warehouse lending portfolio in the U.S. Specific tasks included:
- Creation and oversight of a 70 person special assets team;
- Development and oversight of collateral monitoring and exposure management systems;
- Oversight of loan sale execution process responsible for disposition of over $3 billion of mortgages; and
- Negotiation and implementation of bankruptcy strategies associated with maximization of value of distressed debt in connection with the largest subprime origination and homebuilder bankruptcies.
HQ Global Workplaces is the leading provider of executive office space and associated services and was the largest franchisor of executive office suites in the world. NCA professionals represented the senior creditors through a protracted bankruptcy proceeding that resulted in a successful reorganization negotiated by NCA in which the pre-petition senior lenders equitized their debt to take control of the company. Specifically, NCA assessed HQ’s operating opportunities, including branch rationalizations and lease restructuring opportunities and worked in tandem with management to redesign the organizational structure into an entrepreneurial organization focused on P&L responsibility at the branch level. NCA drove management to (i) sell $20 million of non-core assets, (ii) reject 70+ unprofitable leases, (iii) restructure over 180 leases on substantially more favorable terms, all as the company focused on rationalizing its operations. Post-bankruptcy, an NCA professional served as Executive Chairman of the HQ Board and provided oversight of the continuing operating restructuring that resulted in dramatic EBITDA improvements (i.e., negative $25 million to positive $35 million run-rate). NCA also developed and implemented a restructuring of HQ’s broad franchise network in order to align the interests of HQ and its franchisees. In addition, Navigant Capital Advisors, LLC served as HQ’s exclusive financial advisor and negotiated the sale of HQ to Regus PLC in a transaction that resulted in full recoveries to the holders of pre-bankruptcy secured claims and significant recoveries for the holders of unsecured bankruptcy claims.
New Island Hospital (“NIH”) is a single facility, 150 bed (223 authorized) community hospital servicing Bethpage, NY and the surrounding communities. NCA developed, negotiated and implemented a successful out-of-court restructuring in which NIH’s outstanding bonds were defeased, NIH’s capital structure was restructured resulting in a complete waiver of over 40% of the existing credit obligations and a change of control over the governance of the hospital.