When a project comes onto the market at precisely the wrong time, how do the developer, guarantor and lender negotiate a repayment plan that makes good financial sense for all parties?

After the real estate market collapsed in 2008, burying the developer and guarantor’s condo project in California, HMS facilitated discussions between a third party and their lender, Bank of America, to develop a sensible and expedient resolution.

HMS negotiated a discounted note sale to a third party along with a release of all personal guarantees. Its client avoided litigation and a Chapter 7 or Chapter 11 filing. The bank avoided the cost of litigating, and monetized their loan at a higher amount than they would have through foreclosure.


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