Negative cash flows were eliminating the legacy of the family business, and there were multiple negations on every asset.
Orlando. FL (Vocus/PRWEB) March 22, 2011
Covendium has many years’ experience restructuring companies in deep financial trouble, but they had rarely seen a case quite as heartbreaking as Clark Properties Corp. A devastating plane crash put owner Andy Clark in the hospital and killed his father, Douglas. Their property development company was already underwater from the bursting of the real estate bubble. Financial institutions were refusing to extend credit, and the cash flow had all but dried up. Andy reached out to Covendium, the premier commercial debt resolution firm, and they were able to help him keep the business afloat and negotiate his medical bills. At the hardest moment of his life, Covendium helped Andy find his way.
In May 2009, the twin-engine plane flown by Andy Clark ran out of fuel and crashed just after takeoff at Daytona Beach International Airport, breaking Andy’s back, tearing his aorta, and ripping the skin off his forehead. His 80-year-old father, Douglas, was dead. Andy was hospitalized and in a coma during the funeral. When he came to, he had to face the loss of his father and the slow recovery from multiple surgeries. His face was stitched together over a piece of mesh, he had a stent in his heart, pins in his nose and back, and it was unclear whether he would ever walk again.
That would have been hard enough for anyone, but he also had to deal with a business that was going towards the red in the down economy. Clark Properties, the family business, had numerous homes, condos, shopping centers and office buildings that were losing value in the wake of the 2008 recession. Units were standing empty or selling below the building costs. They could make their interest payments, but weren’t getting anywhere on the principal. Andy tried to take out loans, but lenders were skittish about extending credit to real estate ventures. That’s when he turned to Covendium.
"Andy was a classic case," Covendium President Doug Long told the Orlando Sentinel. "Negative cash flows were eliminating the legacy of the family business, and there were multiple negations on every asset. Our strategy was: 'Let's figure out what we can keep in the life raft.' "
Covendium helped restructure Clark Properties, cutting down the size of the firm and selling many of Andy’s assets. They were able to negotiate loan modifications with most of Clark’s lenders, and worked out a payment plan for Andy’s medical expenses.
“It was definitely do or die,” said Andy. “We sat down and made a plan—like a bankruptcy plan, without filing bankruptcy—and figured out how to get the cash flowing again. They're experts at building a team to help you survive."
Covendium helped Clark Properties figure out how to turn their bad fortune around. For example, the building where Clark Properties is based was otherwise empty in 2009; today it’s at 60% capacity.
Andy is out of his back brace and healed from his reconstructive surgery, and now he’s focused on the future of his business. "Hopefully, some day I'll be able to start building again," he stated.
For more information about how Covendium was able to help Clark Properties, or any of Covendium’s products or services, call them at (407) 284-4000 or view them on the web at http://www.covendium.com.
Covendium specializes in comprehensive commercial debt restructuring and resolution for clients whose financial model has been destroyed by debt service payments that have become unsustainable.
For some clients, all they need is an experienced negotiator to provide their lender with the reality of the financial situation and the tool-set to restructure their obligations. For other clients, Covendium may assist in the replacement of the debt from a bank to a private funding source.
Their team of professional advisors has successfully restructured billions in transactions, with dozens of banking institutions (including major national, regional and community banks) and over 30 separate non-bank financial counterparties.
Bad things happen to good people. Covendium is a premier national debt resolution firm that helps their clients with everything from avoiding bankruptcy in Chicago to commercial debt restructuring in Charlotte to eliminating personal guarantees in Miami to avoiding commercial foreclosure in Phoenix.
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