Multipurpose Sports & Fitness Facility

Company Overview
Not-For-Profit Multipurpose Sports & Fitness FacilityThe business is a state of the art, multipurpose sports & fitness facility totaling nearly 175,000 square feet, that can accommodate multiple user groups and multiple sports at the same time.  The enterprise raised approximately $28 million of bonds to finance its construction.  The sports facility is owned by a not-for-profit enterprise.
Engagement Overview
•  A downturn in the economy caused membership in its user groups to decline and utilization of the facility to  decrease.
•  The decline in revenues and cash flow forced the enterprise to default on the development bonds used to construct the Field house
•  Fort Dearborn was hired to serve as court appointed receiver of the sports facility, a role which involved the following:
•  Overseeing the new management team hired to  “re-start” the facility’s operations
•  Monitoring the performance of the new management team relative to a court approved budget
•  Raising $1.8 million of debt financing to provide management with the capital for a “re-start” of its operations
•  Working in collaboration with the new management team,  Fort Dearborn accomplished the following:
•  Paid down approximately $300k of past due real estate taxes that had been sold to a real estate tax buyer
•  Paid approximately $700k towards a court approved settlement with unpaid contractors who held mechanics liens against the facility
•  Issued monthly cash disbursements to finance the operations until the facility generated sufficient cash flows  to support its own operations
•  Provided accounting’s to the court on the facility’s operations and performance relative to budget
•  Fort Dearborn served as the court appointed receiver, overseeing a new management company that “re-started” the facility’s operations and sports programming.

•  Fort Dearborn secured a $1.8 million financing, by issuing a receiver’s certificate, to finance the re-start of business operations.