Stout served as the financial advisor to a national bank during the workout of a loan to an operator of water parks. The operator owned/leased and managed several parks when it decided to develop two additional parks in new markets. The operator funded the development with a loan from our client. The operator then ran out of cash before the new parks could be completed. We advised the lender to advance the funds to complete construction of the parks with a requirement that the operator put the parks up for sale within 12 months of opening or secure replacement financing in the same time period. We advised the lender during loan negotiation and documentation. We challenged the operator’s business plan and cash forecasts. We worked with numerous parties who expressed interest in acquiring some or all of the parks from the operator. The bank ultimately made a full recovery on its loan, an outcome that was highly unlikely when we were engaged.

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