Under-performing real estate assets and "troubled" properties can have an impact on the financial health of any owner, company or institution. These failures, or potential failures, can be attributed to myriad reasons: inadequate debt or equity capitalization, poor management, unforeseeable changes in the real estate market, and other factors. Consequently, commercial banks, insurance companies and other investors must contend with real estate loan defaults and the administration of unprofitable loan and property portfolios. Owners and developers find commensurate challenges. The crucial task in this business environment is the restructuring of non-performing and poorly performing real estate assets.
PricewaterhouseCoopers has the knowledge and experience required to perform comprehensive debt (and equity) restructuring as well as a keen understanding of key bankruptcy issues. Our real estate specialists can move efficiently through the reorganization process, addressing the issues of inadequate debt or equity capitalization, poor management and unforeseeable changes in the real estate market. We have worked with a variety of owners, as well as commercial banks, insurance companies and financial institutions who are faced with real estate loan defaults and the administration of unprofitable loan and property portfolios. PricewaterhouseCoopers also works with individual creditors and creditors’ committees to maximize financial returns in difficult situations.
Our services include:
- Analyzing bankruptcy, foreclosure and liquidation scenarios
- Evaluating, developing and presenting business and reorganization plans
- Executing workout and capital recovery strategies
- Handling cash management and performance monitoring
- Monitoring debtors’ compliance after a settlement or restructuring takes place
- Providing guidance on litigation, bankruptcy and foreclosure strategies to increase client asset values
- Analysis of profitability, viability and solvency
- Negotiations between debtors and creditors
- Formal reorganization assistance under Chapter 11
- Expert valuation, interest rate and plan fairness and feasibility testimony
- Liquidation planning and implementation
We focus on assessing collateral values and positions, and the overall operating potential of the debtor. We also analyze the viability of the debtor and the real estate project and develop strategies that will maximize our clients’ position. PricewaterhouseCoopers’ wealth of experience in workouts, tax, financial issues and real estate markets makes a critical difference to our clients, whose goal is to reach the highest recovery solution.
