Industry: Real Estate; Development
Challenge: A luxury resort and residence just outside of Las Vegas filed for Chapter 11 amidst an immense drop in property values during the Great Recession. As part of the Plan of Reorganization, a Creditors Trust was created to pursue certain large litigation against the owners and operators of the Trust to recoup losses.
Solution: Capstone Partners’ Financial Advisory Services team professionals managed the day-to-day operations and finances of the Trust and initiated over a hundred claim objections totaling more than $50M.
Results: Through years of negotiation and litigation, the Creditor Trust has settled the major insider action as well as the largest class of unsecured claims and, consequently, returned a material dividend to creditors.