Special Purpose Sports Facility

Company Overview

Special Purpose Sports Facility - The Facility is a state of the art, special purpose arena, totaling over 100,000 square feet.  Construction of the Facility was originally funded by $18 million of municipal bonds.

Engagement Overview
•  Significant management turnover, inconsistent operating strategies among management teams, and difficult economic conditions resulted in the Facility defaulting on its mortgage bonds and its past due real estate taxes being sold.  At the time of our hiring, the Facility did not have enough cash to operate through its seasonally slow summer months and was facing a looming deadline to satisfy nearly $1.0 million in past due real estate taxes.

•  FDP was initially engaged to market the Facility for sale, a role that quickly evolved into monitoring management and the operations of the Facility:
•  FDP reviewed and oversaw management’s operating strategy
•  Monitored the Facility’s cash disbursements
•  Identified areas for potential cost savings
•  Created quarterly cash flow forecasts for the Facility and provided periodic reporting to the indenture trustee and ad hoc bondholders committee

•  Working in collaboration with the owners of the Facility, the indenture trustee, and an ad hoc bondholders committee, FDP accomplished the following:
•  Obtained emergency, interim financing to keep the Facility operating until it could operate under the strength of its own cash flows
•  Prepared an information memorandum and approached a targeted list of industry and financial buyers
•  Developed a data room for due diligence, communicated the Facility’s operating results to potential purchasers
•  Working with the owners and the trustee’s attorney, developed an approach utilizing a “stalking horse” bid in the foreclosure process
•  Guided the owners, board and management of the Facility through the foreclosure process
Results
•  Secured a purchaser for the Facility through a foreclosure process.

•  Worked with the new owner of the Facility to transition the operations and minimize disruption to customers and employees.