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Meruelo

"This bankruptcy contest featured more lead changes than the 2006 Rose Bowl, but KGI was a level-headed player throughout, quickly adapting to new developments and assimilating data to provide analysis that led to more informed decisionmaking and better results for its clients."
- Dean Rallis, Sulmeyer Kupetz, Counsel to the Unsecured Creditors' Committee


Matt Covington

Matt Covington
mcovington@kginc.com
310.829.0255 x228

Please contact Matt directly to receive the full case study

KGI Advises on $320M Restructuring

Competing Plan Prevails in Confirmation Battle

  • Represents Unsecured Creditors' Committee, Equity Holders' Committee and serves as Court-Appointed Monitor
  • 100% Recovery for Unsecured Creditors
  • 5X Recovery for Equity Holders vs. Initial Proposal
  • Competing Plan backed by Unsecured Creditors and Equity Holders Prevails in Extraordinary Bankruptcy Result

On March 26, 2009, Meruelo Maddux Properties, Inc. ("MMPI") and its 53 related Debtor entities filed for Chapter 11 protection. On July 25, 2011, MMPI exited from Chapter 11 with new management, new majority ownership, and $38 million of new capital under the competing Plan of Reorganization sponsored by Mount Kellett Capital Management and Global Asset Capital (the "Charlestown Plan").

This extraordinary case, which featured three competing plan proponents filing multiple versions of their Plans of Reorganization, will reverberate in real estate and legal circles for many years to come.

KGI served in multiple roles throughout the case, providing analysis and advice that led to its clients achieving these exceptional results. As Steven Taylor of The Taylor Fund and Chairman of the Equity Holders’ Committee explained, "KGI's ability to integrate the financial data with the broader dynamics of the bankruptcy process was invaluable in helping the Committee reach this tremendously successful result."

KGI combined its deep Financial Restructuring expertise with the resources of its standout Real Estate Group to provide superior advice to its clients. Call KGI when you require:

  • Restructuring debts, consensually or via bankruptcy
  • Raising capital for distressed or special situations
  • Resolving inter-creditor or ownership conflicts
  • Executing sales or orderly liquidations
  • Providing litigation support

Whether a Company is struggling financially or on the cusp of breakthrough growth, KGI can help. Our seasoned experts work alongside management to solve complex cash flow issues, operational challenges and other business crises. If liquidity or sale is needed, KGI provides a powerful combination of services and expertise to achieve outcomes that cannot be duplicated by other standalone consulting firms.