Client Situation Resolution

Refco, LLC

Refco was one of the world’s largest futures commission merchant trading companies with over $5.0 billion in assets. The Trustee required assistance in selling a minority position in an options, commodities and futures clearing company. An ABS professional led this effort. Managed the sale of this minority interest which ultimately sold at a significant premium above net book value through a 363 sale to Morgan Stanley.

The Financial Guarantee Insurance Company

The Company, a monoline insurer, faced a TRO filed by a large shareholder in Delaware Chancellery Court who sought to prevent the Company from closing a material transaction. An ABS professional served as an expert valuation witness for the Company. Submitted and defended an expert report within a two week period. The matter settled on terms favorable to the Company during trial.

Nexxar, Inc.

Nexxar was the sixth largest wire transfer company in the world with substantial international holdings. Continuing operating losses and over-expansion led to a liquidity crisis. An ABS professional led a team which assisted senior management in evaluating potential options. Analyzed strategic options and identifying avenues for interim financing. Ultimately, the plan developed and implemented was a sale of operating assets outside of bankruptcy.

Lehman Brothers

Lehman Brothers was a Limited Partner and Equity Holder of a REIT that held 68 retail petroleum properties that were pledged as security on a $65 million debt instrument. The General Partner was in default of certain provisions of the financing agreement and the operating agreement. Lehman needed an analysis of the value of the properties to determine whether or not to foreclose on the assets. An ABS professional led a team of valuation consultants to analyze each of the assets and determine current market value in a rapidly declining market. The ABS professional prepared a report of value for each of the properties and presented the findings to a committee comprised of six senior level Lehman managers.
FDIC Regulated Bank The financial institution was accused of aiding and abetting a company in the sale/leaseback of emergency medical response units. The financial instruments used in the transaction were made through an investment arm of the bank and transactions flowed through accounts maintained at the bank by the company. An ABS professional was an instrumental part of a team of forensic accountants that investigated and reconstructed loan transactions entered into by investors who purchased medical response units and leased them back to the company. The professional reviewed transactions made through tax-deferred and after-tax investment accounts. The analysis allowed the financial institution to settle claims made by investors at amounts less than originally claimed.