 OUR
GOAL: To increase clients’
cash flow and profitability by restructuring financial obligations and
turning around under performing operations.
We’re specialists at making sense of complex financial and real
estate data, who also bring senior-level executive experience to the table,
along with exceptional negotiating skills, extensive knowledge of finance,
operations, commercial real estate and bankruptcy laws nationwide. When
you’re under pressure, we know how to eliminate distractions—freeing
you and your management to do what you do best—run your business.
REAL ESTATE
LEASE RESTRUCTURING
Rent reductions, lease terminations, subleasing and assignments of
leases, remodeling contributions from landlords
- A big-box retailer acquired several regional companies, creating
a portfolio of under performing stores. A national real estate company
worked on the problem for 18 months, without resolution. In seven months,
HMS negotiated termination of four leases, reducing the company’s
total lease liability by $9.3 million and eliminating an additional
$1.2 million in annual operating losses.
- When a national chain wanted to test market a new concept, funds were
limited and timing was urgent. Within four months, HMS persuaded seven
of 10 landlords in the test market to contribute funds for store remodeling,
resulting in savings of $1.2 million.
EQUIPMENT
LEASE RESTRUCTURING
Lease payment reductions, lease terminations
- Worked with 13 of the nation’s largest lenders, successfully
restructuring $102.4 million in equipment leases for Pillowtex, reducing
the company’s total lease liability by more than half, to $45.5
million.
DEBT RESTRUCTURING
Discounted loan payoffs, payment reductions, foreclosures and judicial
foreclosures
- A leading Los Angeles real estate developer sought a discounted loan
payoff on a 100,000-square-foot shopping center. HMS negotiated effectively
with Wells Fargo, reducing the loan balance from over $9 million to
$4.8 million.
- Restructured $44 million in loans and credit lines to rescue a prominent
Northern California real estate development firm after Wells Fargo and
Bank of America called 18 loans.
- When Bank of America filed a judicial foreclosure action against a
well-known Southern California architectural firm, HMS represented the
principals and was successful in protecting them from personal liability.
CHAPTER 11 PLANNING
AND IMPLEMENTATION
Financial analysis of alternatives, pre-packaged bankruptcy filing,
lease and debt restructuring, 502(b)(6) claims negotiations
- In the Westar Cinema bankruptcy, provided valuation and appraisal
services to the Official Committee of Unsecured Creditors.
- Advised Houlihan’s, a Midwestern chain of 75 restaurants, in
preparation for bankruptcy filing.
- Restructured more than 60 theater leases for Loews Cineplex Entertainment,
one of the world’s largest theater owners, reducing occupancy
costs by $84 million and contributing significantly to the company’s
successful emergence from bankruptcy.
- Successfully negotiated 502(b)(6) creditor claims against the estates
of Boston Market and Sizzler International, reducing their liabilities
by $4.3 million and $2.3 million, respectively.
SALE OF ASSETS,
DIVESTITURE AND LIQUIDATION
Real property sales, sales of operating business divisions
- Sold 40 store leases for Einstein/Noah’s Bagels, the largest
bagel chain in the United States.
- Provided portfolio analysis of 450 stores to Follett Higher Education
Group, the world’s largest college bookstore chain. By focusing
on profit improvement, divestiture or liquidation, HMS helped achieve
results far in excess of the company’s projections, which enabled
management to earn 100 percent of its annual bonus opportunity.
- Advised Rose’s Department Stores, a chain of 115 stores located
in the Southeastern U.S., in its acquisition by Variety Wholesalers.
DUE DILIGENCE
Pre-acquisition analysis, pre-closing restructuring, portfolio strategy
- Worked with Onex Corporation, the fourth-largest company in Canada,
providing advice on its proposed acquisition of two leading movie theater
chains.
- Advised The Right Start prior to its acquisition of FAO Schwarz.
- Assisted in the acquisition and restructuring of 11 Round Table Pizza
restaurants in Fresno, California.
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