MCA Financial Group was engaged by a secured lender in connection with the Chapter 11 bankruptcy of a borrower who owned a 200,000-square-foot office building in Houston, Texas. The borrower, facing foreclosure, filed bankruptcy to halt the Trustee’s Sale and proposed a Plan of Reorganization to restructure its debts. MCA was retained to evaluate the feasibility of this Plan on behalf of the lender.
The MCA team conducted a comprehensive evaluation of the borrower’s proposed Plan of Reorganization, which sought to restructure the building’s use and financial outlook. This included analyzing the financial history of the property and assessing whether market conditions in Houston’s office sector could support the borrower’s proposal to reposition the building as for-sale office condominiums. Through forensic examination of financial data and collaboration with local real estate experts, MCA assessed the viability of this strategy and its ability to generate sufficient revenue to repay the secured lender and other creditors.
Challenges arose when the borrower failed to provide timely disclosure of material facts, often delaying critical information until just before court deadlines. MCA responded by rapidly analyzing the newly disclosed information and delivering expert opinions to the lender’s legal team and the Bankruptcy Court. The engagement required expertise in forensic accounting, financial analysis, market assessment, and clear, credible testimony in court.
The Bankruptcy Court ultimately rejected the borrower’s proposed Plan, a decision that aligned with the lender’s objectives. This favorable outcome was achieved, in part, due to MCA’s responsive and high-quality expert analysis and testimony. The client and its legal counsel expressed their satisfaction with MCA’s contributions to this successful result.
This case underscores MCA Financial Group’s ability to navigate complex and evolving scenarios with agility and precision, reinforcing its reputation for delivering results in high-stakes engagements.