Certus is pleased to announce the successful turnaround and sale of Vista Grande Villa
[JACKSON, MI] — Certus Financial LLC, a leader in the turnaround and restructuring of distressed assets, is pleased to announce the successful turnaround and sale of Vista Grande Villa, a CCRC located in Jackson, Michigan. Certus was engaged and has concluded its advisory role to the Trustee and creditors.
Highlights include:
- Representation of Trustee: Represented Trustee in defaulted $21.8MM tax exempt bonds on a 365-unit life plan retirement community.
- Comprehensive Facility Assessment: Provided an assessment of the facility, operations, financial condition, and outlook of the Project.
- Negotiation of Forbearance: Negotiated forbearance with Debtor and their Financial Advisor to avoid bankruptcy with pre-approved DIP lender; conditions including:
- Specific forbearance period
- Negotiate standstill agreements with existing creditors to allow plan
- Operational restrictions/covenants
- Consensual sale with process and broker subject to Trustee approval
- Waterfall of sale proceeds
- Trustee Instruction Procedure
- Guidance of Sale Process: Advised on selection of investment sales broker, sales process, and bidding procedures.
- Effective Cash Management: Worked with operator/onsite management to manage cash through sale process, resulting in no usage of Trustee funds.
- Transparent Communication: Provided consistent operational and sale updates to Trustee and bondholder committee, ensuring transparency and informed decision-making.
- Through Review of Purchase Offers: Vetted purchase offers with Trustee, Bondholders, and Borrower’s Financial Advisor
- Strategic Support: Assisted counsel with preparation for Trustee Instruction Procedure (TIP)
- Exceptional Recovery: Concluded sale resulted in a near par recovery for Bondholders vs. original proposed Bankruptcy/Dip plan that would have achieved a +/-35% recovery.
- Community is now thriving and growing