A private lender with a $700 million portfolio of residential construction and development loans experienced liquidity and cash flow issues due to the crash of the residential real estate market.
After being appointed as a general receiver, Lighthouse Management worked with creditors to develop a multi-year workout and marketing plan to stabilize cash flow and liquidate the lender’s loan portfolio. Lighthouse staff members served in the capacity of CEO and CFO during the wind down process. Lighthouse Management also identified and pursued fraudulent transfers against company insiders.
Lighthouse’s plan resulted in the foreclosure and sale of over 4,000 residential and commercial properties and the recovery of over $42 million from the pursuit of fraudulent transfer claims.