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Lender Representation

Hospitality Portfolio

Limited Service Company Bankruptcy

Background: Ajax Principal, while at while at a major investment bank, worked on the restructuring of a limited service hospitality company The bank originated three different loans to the company, containing a total of 38 motels The firm then syndicated the loans to different but overlapping investor groups and retained a portion of each loan The company’s performance subsequently declined and they declared bankruptcy.

Restructuring: Contentious bankruptcy process included the hospitality company abandoning 5 assets and filing an equitable subordination claim against the bank Managed the three different loan syndicates comprised of some of the banks’ top clients, each taking a different approach in bankruptcy Re-underwrote all 38 properties so as to inform the strategy of each loan syndicate Went through the discovery process, uncovering unexpected items that impacted the eventual outcome.

Outcome: Identified new managers for the abandoned properties, gaining title, rebranding them, improving their performance and ultimately selling them. After working through an almost 2 year bankruptcy process, the bank was ultimately able to deliver the best available outcome for each syndicate

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