Case Studies

Arizona Hotel Receivership

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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Home·Arizona Hotel Receivership

The Situation

As State Court Receiver of a non-performing chain hotel property in Yuma, Arizona with asbestos, we successfully achieved a loan recovery for the lender.  The Receivership Sale eliminated any future environmental liability risk for the lender that could have resulted from a foreclosure.

How We Advised

Our key actions leading to operating improvements and a successful sale of the property included:

  • Thwarted cyber-pirate’s attempt to take the reservation system hostage and avoided paying ransom
  • Removed the borrower, who was stealing FF&E and moving it to another property
  • Stabilized the property operations and assured the property had a functional reservation system
  • Kept the property open via managing to positive net cash flow
  • Negotiated with national brand to assure assignability of franchise agreement
  • Shut down all rooms that were health risks
  • Preserved value

Upon taking possession of the property, we:

  • Managed all hotel operations, including hiring and overseeing a general manager
  • Updated and managed all reservation systems
  • Collected all income and paid all property related expenses.
  • Delivered detailed property-related accounting to court and creditors on a regular basis.
  • Worked to stabilize property and improve RevPAR.
  • Hired third-party sales agent and approved and directed all marketing activity
  • Reviewed and selected buyers and negotiated all purchase contracts with buyer
  • Coordinated all legal processes required to achieve court approval of the sale
  • Coordinated all escrow and title requirements to successfully close the sale

Key Contact

David Stapleton, CPA, CLPF
Senior Managing Director
Strategic Advisory Practice
+1 213 235 0601
[email protected]

Related Practice Areas

> Receiverships
Federal and state courts, creditors, and legal counsel choose our team to serve as Receiver of distressed businesses and real estate entities. We stabilize operations and cash flow, safeguard business assets, and pursue methods to maximize financial recovery. Our multidisciplinary team applies a wide breadth of restructuring and industry experience as Receiver to take control of companies facing financial, operational, and legal issues.

 

> Solutions for Distressed Situations
We deliver integrated solutions for distressed and insolvent businesses that maximize recovery, mitigate risk, and restore enterprise value. Our experts are retained to help distressed organizations stabilize operations, protect stakeholder interests, and execute turnaround strategies. We take an operationally-focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth.

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