Elsewhere
in this Web Site are citations of key appointments under our administration
that are a matter of public record. Because some appointments are private
and confidential and there are confidential aspects of most appointments,
we provide these elements of our actual appointments, which are not a
matter of public record. The elements of actual appointments are presented
to provide the reader a more comprehensive idea of the type of
work we undertake.
Liquidator
of a financial institution on behalf of regulators
When
state banking or financial institution regulators seize branches
of foreign banks or other organizations that are not insured by
the FDIC or other Federal entity, they usually have the option
of utilizing existing staff, most likely financial institution
examiners, to liquidate the operation or engage external contractors
for this purpose. Inevitably the issues are relatively complex.
Normally there are difficult credit matters that require resolution.
Legal complexity is to be expected. It is to be expected that
the regulator, acting as Liquidator, is a fiduciary for either
the foreign head office or shareholders of the institution or
depositors and other creditors. Typically the expenses of liquidation
can be charged to the liquidating estate.
On
multiple occasions we have served as Liquidator of financial institutions
seized by regulators. To facilitate this, Mr. Evans has served
as Special Deputy Superintendent of Banks and Special Deputy Commissioner
of Financial Institutions. He has served as Chief Liquidator acting
for the state regulator. As such, he serves as the Chief Executive
Officer of the liquidation. His senior associates have acted as
Deputy Chief Liquidators. We have liquidated pension management
organizations acting as Receiver.
Responsibilities
have ranged from claims administration, litigation management
and asset liquidation. Negotiations with foreign regulators have
been part and parcel of such assignments.
We
believe it to be accurate to assert that no U.S. non-governmental
organization has greater experience in the liquidation of financial
institutions on behalf of government than ourselves. Return
to top of page.
Agent
for secured bond holders
When
the secured bonds of an Internet company went into default, we
were appointed Agent for the bondholders at the suggestion of
their counsel. In close consultation with counsel for the bondholders,
we seized the assets securing the bonds. This involved complex
technical matters because of the nature of the software and the
servers on which they were lodged. The assets were secured. A
program to expose the assets to potential buyers was undertaken,
followed by an auction. As a result the bond holders made a better
recovery than otherwise would have been possible and they were
better insulated from potential liability than they would been
following alternate strategies. Return to top
of page.
Receiver
for unencumbered properties that are subject to ownership dispute
A
portfolio of commercial properties had been the subject of dispute
and litigation between the partners. There was a mutual loss of
confidence between the partners that led to a management breakdown.
Most decisions became subject to disputes and the business began
to seriously suffer a result. The only thing that the partners
could agree upon was that the portfolio was deteriorating. Eventually,
we were appointed Receiver for the portfolio. It is rare that
a Receiver is appointed in situations where there is no debt,
but this was a appointment where it was highly appropriate.
Acting
as fiduciary for both partners, we were able to take charge of
the property, correct deferred maintenance and complete lease
negotiations with a national tenant that had broken down. Without
being forced to interact regarding day to day issues, the partners
were eventually able to work out a settlement between themselves
and a mode of ongoing management. We were able to hand back the
properties in good condition with greatly improved occupancy.
Return to top of page.
Trustee
for the shares of a bank
When
the controlling shareholder of a regulated financial institution
became disqualified for such ownership, regulators required immediate
divestiture. Immediate sale would have precluded getting appropriate
value for the institution. Mr. Evans was approved by the Board
of Governors of the Federal Reserve System to take control of
the institution, as trustee, and manage the orderly sale over
a commercially reasonable period of time. In that capacity we
actively interacted with the financial, investment banking and
regulatory communities. Return to top of page.
Manager
for a portfolio of troubled assets
When,
on many occasions, a lender found it appropriate for others to
manage a portfolio, we have taken over the administration of complex
and troubled loans and real estate. Our style is such that we
normally undertake appointments where we can enhance value by careful
management before liquidation. By improving the performance of
loans or income producing property, we have repeatedly been able
to produce much better results that a quick fire sale of assets
could have generated.
We
have successfully managed and liquidated a number of types of
portfolios including hotel properties, medical establishments,
housing tracts and commercial lending portfolios.
We
would not, in most circumstances, be the most appropriate managers
of retail loan or credit card portfolios. Return
to top of page.
Receiver
for a closely held company that was subject to a shareholder dispute
A
dispute between the overseas shareholders and local shareholders
of a manufacturing and distribution company arose over the management
and integrity of the companyıs operations. Allegations of money
laundering and unjust enrichment caused us to be appointed as
Receiver. Our assignment was to determine if the business had
an on-going value or should be liquidated and to perform an accounting
as to sources and uses of funds. By the time of our appointment
the business operations had dramatically deteriorated and the
business was not salvageable. The largest asset of the business
was factory where its operations were located. We created and
implemented an orderly marketing plan for the facility, which
resulted in a sale above the appraised value. We also produced
a detailed accounting that did confirm the allegations of money
laundering and unjust enrichment.
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