RCS Bankruptcy Practice Engagement
Examples
Issue/Opportunity
Issue: Commercial Real Estate Bankruptcies
RCS Role
Response: RCS has provided litigation consulting and expert testimony in over fifty real estate Chapter 11 bankruptcy cases (mostly single asset). RCS’ primary role and continuing specialty: bankruptcy Plan feasibility and the determination of the appropriate interest rate when a creditor’s claim is being “crammed down.”
Issue: Multi Family Rental Real Estate Bankruptcies (numerous). A major government-sponsored enterprise that supports the financing of residential properties nationwide has had numerous loans secured by multi-family properties mired in Ch. 11 bankruptcy.
Response: For over 20 years, RCS has been retained to assist in evaluating bankruptcy Plan feasibility and the determination of the appropriate interest rate. For example, in 2009 RCS was retained to oppose the cramdown of the largest loan in this enterprise’s loan portfolio, a loan secured by a group of apartment projects in the Phoenix, Arizona metropolitan area. A settlement was reached after RCS’ analysis was completed.
Issue: U.S. Bancorp Mortgage needed a real estate bankruptcy testifying expert in the well-known Bonner Mall case.
Response: One of RCS’ principals, Mr. Ferrell, was the bankruptcy plan feasibility expert in this noted case, that helped established the Ninth Circuit U.S. Court of Appeal’s “New Value” exception to the Absolute Priority Rule.
Issue: Immediately after the 2008 Global Financial Melt-down, a newly remodeled, repositioned and reflagged Waikiki Beach resort hotel filed for bankruptcy and fired its international flag and its hotel management. Several litigation cases emerged out of these disputes including a Ch. 11 bankruptcy.
Response: For the secured creditor that held a $120 million claim, RCS provided real estate and hotel operating analyses, produced an expert report and provided testimony at deposition. A consensual plan was approved the day before the confirmation hearing was scheduled to begin. Post 2008, RCS provided similar services to a number of lenders that had hotel collateral in bankruptcy.