Skip to main content

MCA Financial ensures timely construction completion of Bishop’s Lodge, a 5-star resort in New Mexico

By September 18, 2023Insights

At the request of the mezzanine lender, the District Court of Santa Fe, New Mexico, appointed MCA Financial Group Receiver of Bishop’s Lodge, a five-star 100-room luxury resort located in Santa Fe, New Mexico. The resort was amid construction and pre-opening preparation when it came under the Receivership’s purview; MCA’s role included managing the completion of the resort prior to its scheduled opening date and overseeing resort operations with the assistance of a resort management firm. MCA Financial managed the resort for a year during the Receivership, averting a shutdown and successfully selling the property in a Chapter 11 proceeding.

As Receiver, MCA Financial ensured the timely completion of the resort’s construction in alignment with its scheduled opening date. MCA Financial managed all aspects of the extensive 100-acre resort project, including overseeing its operation and working alongside its professional hotel management firm to manage the day-to-day operations. MCA took control of construction finances, including strategic borrowing from existing lending facilities to facilitate the project’s successful completion. Given significant budget constraints, close collaboration with contractors and lenders was essential for making critical construction decisions, ensuring the project’s timely completion, and delivering the requisite amenities for a five-star luxury resort.

During the receivership, the resort’s borrower filed for Chapter 11 reorganization in Delaware, adding an element of complexity to the process. However, MCA’s experienced professionals retained control as the Receiver and skillfully facilitated both the successful completion of construction, the smooth operation of the resort and its finances, and the successful sale of the property.

This multifaceted endeavor required expertise in construction, construction finance, complex asset management, effective communication with stakeholders, lenders, construction subcontractors, financial intricacies, and resort operations. Collaboration was key, and customary challenges were adeptly addressed, even as the overlay of bankruptcy proceedings further complicated the process.

The resort continued operations throughout this challenging period, a testament to MCA Financial’s unwavering dedication and proficiency. The resort was successfully sold within the Chapter 11 proceedings, a sale which was executed with remarkable speed, ensuring the resort’s continuous operation to this day.