Bankruptcy and Restructuring Services
Madison Hawk’s structured accelerated marketing program is an innovative, disposition and workout strategy being utilized by lenders, special servicers, private equity firms, Trustees, partnership’s and other parties of interest in order to maximize net realizable value.
Our professionally conducted 363-Auction Bankruptcy Sale program is a powerful, yet protective, workout solution utilized to generate market value on a non-contingent, all-cash basis for a property, while maximizing recovery.
The Madison Hawk team is the most experienced and the industry leader in designing and executing asset specific disposition and capital market solutions across all real estate asset classes in bankruptcy, as well as in and out of court workout restructuring. We bring a professional, sophisticated non-distressed marketing and disposition strategy to a distressed situation delivering a market result and not a liquidation value.
We have handled single asset and large portfolio 363-real estate sales in jurisdictions across the United States.
Madison Hawk principals have executed more successful structured, accelerated auction programs of commercial, industrial, investment and residential properties in Bankruptcy Court than anyone in the industry.
The Madison Hawk 363-Marketing and Disposition Program Advantage:
Our structured program provides the following significant advantages to the debtor and creditors:
- Maximize Net Asset Recovery: A 363-Auction Bankruptcy Sale of the asset will maximize net recovery for the debtor and all creditors. The competitive nature of a professionally conducted auction campaign will generate market pricing on a non-contingent basis.
- Provide Full Lender Protection: A 363-Auction Bankruptcy Sale provides the ability to market an asset to be sold absolute, regardless of price, subject to the approval of the United States Bankruptcy Court, with the secured creditor having the right, but not the obligation, to credit bid. The lender has complete protection with respect to its collateral by its right to credit bid its position while also having the ability to sell the asset to a third party and thus converting the collateral into cash.
- Structured Sale: A professional auction-marketing program would generate non-contingent all-cash offers on an asset within 60 to 75 days. All due diligence items, which are typically post-contract contingencies in a conventional sale are provided to potential bidders in advance. Complete up-front property due diligence will result in a superior return and higher pricing.
- Accelerated Asset Control: The structured 363-Auction Bankruptcy Sale provides a vehicle to shorten the time frame of a normal foreclosure process. If the creditor recovery analysis supports taking the property into portfolio, this permits the creditor to gain control of the asset, preserve its collateral, and avoid the cost of a lengthy procedure to obtain title.
- Real Time Market Data: The auction marketing program provides the Estate and creditors with the ability to obtain a real time view of the market value of their asset. For the lender it provides valuable information to assist in the analysis and decision making process of whether maximum net recovery on the asset will be achieved by selling the asset to a third party or instead credit bidding and taking title.
Selected Transaction List
- NJ and PA Multifamily Portfolio Sale; Chapter 11: Represented the debtor, a large regional multifamily operator of a 3,000-unit portfolio located in New Jersey and Pennsylvania, in the $49 Million sale of nine apartment buildings, totaling 1,100 units, as part of a workout with one of the United States’ largest thrift banks.
- New Jersey Bankruptcy Portfolio Sale; Chapter 7: Represented the Chapter 7 Trustee in the sale of a 340-property residential, commercial and land portfolio throughout the state of New Jersey for $49 Million. This was largest 1-4 family auction ever conducted in the Northeast.
- Residential Development Portfolio; Chapter 11: Represented a large regional builder in the sale of eight subdivisions and finished inventory located in Maryland, Delaware and North Carolina for $10.5 Million. 20 out of 21 parcels were sold to third party cash bidders.
- New York Multifamily and Luxury Homes Portfolio; Chapter 11: Represented the debtor in the $13 Million sale of a 25,000 square foot home in Wall, New Jersey; a 6,000 square foot home in East Hampton, NY; as well as 40 and 29-unit apartment buildings in Brooklyn, New York.
- Residential Subdivisions; Chapter 11: Represented a large regional builder in the sale of six partially completed subdivisions and finished inventory throughout the state of New Jersey for $30,000,000.
- Bronx, New York; Chapter 11: Represented the debtor in the sale of a 22,000 square foot former car dealership and development parcel for $4.6 Million.
- New Jersey Multifamily Portfolio; Chapter 7: Represented the Chapter 7 Trustee in the $16 Million sale of nine apartment building totaling 292 units, located in New Jersey.
- Atlantic City Apartment Building; Chapter 11: Represented the Chapter 11 Trustee in the $13.5 Million sale of a beachfront 365-unit apartment building in Atlantic City, NJ.
One or more of the Madison Hawk team members was involved in the marketing and sale of each of these properties/portfolios. Note: the entity which marketed the properties was under a different name.