Breakwater Equity just passed the $1 Billion dollar mark in workout project engagements. We thought it would be beneficial to our readers to look at some of the lessons learned while working through the myriad issues contained in over a billion dollars worth of commercial loans. Here are some of our favorites that come to mind.

Share all information about the deal early in the process, and keep sharing: Our ability to successfully negotiate with the various players in a workout is hugely influenced by the quantity and quality of the information we have about the situation. Many times clients unknowingly withhold vital information thinking that some pieces of information just simply weren’t relevant. Everything counts, so let us know. In addition, time is usually of the essence, so getting all of the pertinent documentation between the various parties is vital to us beginning the engagement.

Continue reading “Lessons Learned From $1 Billion in Loan Workout Engagements” »

Peacock Gap Golf Course

We recently had the chance to sit down and interview George Lee, the General Manager for several golf courses that were devastated by the recent economic downturn. George has a unique perspective on Breakwater’s successful commercial loan workout strategies having seen firsthand other groups try to achieve the same result but unable to navigate through the various workout minefields. Here are some excerpts from that interview.

What was your challenge at the time, and how did you end up hiring Breakwater Equity?
The owner I worked for had golf courses in Arizona and I had recommended we hire Breakwater Equity Partners to help perform a commercial loan workout on those properties. But based on advice from our attorneys at the time, the owner decided that we should attempt the workouts on our own with the help of our attorneys, and that experience did not go well.

Continue reading “Unique Insights From A Commercial Loan Workout Client-Interview with George Lee” »

A strategically designed commercial workout that combined loan modification, bankruptcy, and a “White Knight” investor saves country club from imminent foreclosure and breathes new life into a 50-year old San Rafael institution.

San Diego, CA (PRWeb) March 16, 2011 – Breakwater Equity Partners, a consulting firm specializing in commercial loan workouts, announced today the successful restructuring of Peacock Gap Country Club and Spa, a 50-year old golf course located in San Rafael, CA. Foreclosure on the 137 acre, 18-hole golf course was averted when a new investor purchased the defaulted note from the lender, Nara Bank.

Continue reading “Commercial Loan Workout Provides Welcome Relief to Troubled California Golf Course” »

It’s one thing to know that there is an elephant in the room, but it’s a totally different situation when no one is willing to vocalize that there is an elephant in the room or talk about the problem that it is causing. This may well be the situation with many banking institutions at present. In spite of the government’s attempts to buy time for the recovery process by promoting their supposed re-gained health and vitality, the stark truth is that business at your local bank may get much worse before it gets better. Continue reading “Just How Many “Troubled” Commercial Properties Is Your Bank Carrying?” »