Sample Transactions

Transaction in a difficult environment


Project­ name

Autho­rity

Client

Banks

Dura­tion

6 months

Topic

Mode­ra­tion
Media­tion
Trans­ac­tion

Volume

EUR 20 million


Star­ting situa­tion: Owner expe­ri­en­cing diffi­cul­ties due to growing cash flow problems resul­ting from the Management of his port­fo­lio of office buil­dings. Initi­ally very success­ful private ownership consor­tium in deve­lop­ment and invest­ment, but in the end phase, howe­ver, main owner alre­ady under OE and can no longer be encou­ra­ged to coope­rate with the lending bank. Conse­quently threa­te­ned insol­vency, which would have caused a signi­fi­cant need for value adjust­ment and invol­ved costs and time for the bank, in order to protect itself from the threa­te­ned loss of value to the commit­ment.

One of the co-inves­tors, who himself used to work for a bank, took all steps to prevent a termi­na­tion of the loan by the bank, resul­ting in insol­vency. The condi­ti­ons were there­fore diffi­cult, the inves­tors were invol­ved in other simi­lar cases with further credit insti­tu­ti­ons at the same time.

Task: Esta­blish trust in the owners and – under these diffi­cult condi­ti­ons – deve­lop a mutually bene­fi­cial means of prompt sale in order to limit further decrea­ses in market value and liqui­dity.

Solu­tion: Search for insti­tu­tio­nal inves­tor with the willing­ness, tolerance and under­stan­ding for drawn out nego­tia­ti­ons between the seller and the purcha­ser, its bank must not take on the role of a mana­ging direc­tor.

Follo­wing a thorough inves­ti­ga­tion of the contrac­tual ties, rights and obli­ga­ti­ons, as well as the owner’s cash flow, the condi­ti­ons were able to be esta­blis­hed under which a new solu­tion approach for a tran­sac­tion would be reali­sa­ble. The focus was on weighing up the insol­vency costs and a condi­tion for termi­na­ting the loans which was accep­ta­ble to both parties.

The commu­ni­ca­tion barrier was able to be broken down through mode­ra­tion and media­tion by a Senior Part­ner from Brüggemann GmbH, the solu­tion was deve­lo­ped amica­bly, a purchase offer from an inter­na­tio­nal insti­tu­tio­nal inves­tor drawn up, and the property’s holding company protec­ted from insol­vency. As a result, the bank was able to cancel its provi­sion for a signi­fi­cant value adjust­ment of its loan again (sum in the tens of milli­ons).


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Sample Transactions

Transaction in a difficult environment


Project­ name

Autho­rity

Client

Banks

Dura­tion

6 months

Topic

Mode­ra­tion
Media­tion
Trans­ac­tion

Volume

EUR 20 million


Star­ting situa­tion: Owner expe­ri­en­cing diffi­cul­ties due to growing cash flow problems resul­ting from the Management of his port­fo­lio of office buil­dings. Initi­ally very success­ful private ownership consor­tium in deve­lop­ment and invest­ment, but in the end phase, howe­ver, main owner alre­ady under OE and can no longer be encou­ra­ged to coope­rate with the lending bank. Conse­quently threa­te­ned insol­vency, which would have caused a signi­fi­cant need for value adjust­ment and invol­ved costs and time for the bank, in order to protect itself from the threa­te­ned loss of value to the commit­ment.

One of the co-inves­tors, who himself used to work for a bank, took all steps to prevent a termi­na­tion of the loan by the bank, resul­ting in insol­vency. The condi­ti­ons were there­fore diffi­cult, the inves­tors were invol­ved in other simi­lar cases with further credit insti­tu­ti­ons at the same time.

Task: Esta­blish trust in the owners and – under these diffi­cult condi­ti­ons – deve­lop a mutually bene­fi­cial means of prompt sale in order to limit further decrea­ses in market value and liqui­dity.

Solu­tion: Search for insti­tu­tio­nal inves­tor with the willing­ness, tolerance and under­stan­ding for drawn out nego­tia­ti­ons between the seller and the purcha­ser, its bank must not take on the role of a mana­ging direc­tor.

Follo­wing a thorough inves­ti­ga­tion of the contrac­tual ties, rights and obli­ga­ti­ons, as well as the owner’s cash flow, the condi­ti­ons were able to be esta­blis­hed under which a new solu­tion approach for a tran­sac­tion would be reali­sa­ble. The focus was on weighing up the insol­vency costs and a condi­tion for termi­na­ting the loans which was accep­ta­ble to both parties.

The commu­ni­ca­tion barrier was able to be broken down through mode­ra­tion and media­tion by a Senior Part­ner from Brüggemann GmbH, the solu­tion was deve­lo­ped amica­bly, a purchase offer from an inter­na­tio­nal insti­tu­tio­nal inves­tor drawn up, and the property’s holding company protec­ted from insol­vency. As a result, the bank was able to cancel its provi­sion for a signi­fi­cant value adjust­ment of its loan again (sum in the tens of milli­ons).



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