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Receivership, Management and Disposition Case Studies
By combining Receivership, Trustee, Management and Disposition services, Trigild is able to consistently deliver superior recovery across a wide variety of assets.
To find out more about the extraordinary results Trigild has delivered for clients, please click on the links below:
- Case Study #1
Portfolio Sale for Double the Amount Appraised at Receivership. - Case Study #2
Trigild facilitates the sale of 62 franchise drive-in restaurants just 80
days after being appointed receiver. - Case Study #3
Trigild moves quickly to improve profit, maximize cash flow and avoid
legal delays on a portfolio sale. - Case Study #4
C&G Portfolio with environmental issues sells quickly for a fair price,
while lender stays out of chain of title. - Case Study #5
Trigild renegotiates costly capital improvements with luxury chain to
assure note pay-off to lender’s satisfaction. - Case Study #6
Trigild turns around a portfolio of 40 QSR’s, sells all properties for
several million dollars more than initial offers. - Case Study #7
Trigild turns around a hotel bypassed by the interstate, increasing
revenue and profits to facilitate a favorable sale. - Case Study #8
Trigild turns around a portfolio of 18 QSR’s, working with Franchisor and Trustee to complete sale to a new franchisee. - Case Study #9
Trigild turns around and creates a market leader from 30-year-old
run-down beachfront hotel, increasing owner's profit by over 600% within 24
months.
Case Study #1
Services:
Trustee, Management, Disposition
Asset:
Casual Dining Restaurant Portfolio
Portfolio sale for double the amount appraised at Receivership.
Synopsis:
The federal court appointed a Trigild Executive as Bankruptcy Estate Representative and Trigild operator of six franchised casual dining restaurants
Challenges:
- Franchisor had incurred substantial financial losses.
- Poor systems & controls were in place.
- The staff was demoralized.
- High theft rate was experienced across all operations.
Solutions:
- Worked closely with franchisor on all aspects of operations
- Implemented systems to control the cost of food, liquor and labor
- Upgraded service levels and food quality
- Implemented tight purchasing, inventory and cash handling systems
- Closed restaurant corporate office, accounting handled out of Trigild office
Results:
- Operating profits improved from a one million dollar loss to a quarter million profit in just one year
- Client received maximum return—the portfolio was sold for double the amount appraised at the time of the Receivership appointment.
Case Study #2
Services:
Restaurant Receivership, Management, Disposition, Brand
Asset:
Protection of Quick Serve Restaurant Portfolio
Trigild facilitates the sale of 62 franchise drive-in restaurants in just 80 days after being appointed Receiver.
Synopsis:
A Trigild executive was appointed restaurant receiver for a portfolio of 62 quick serve restaurants by a NY Federal District Court. With the court’s permission, the Receiver hired Trigild to operate the properties, located across 5 states. Additionally, the Receiver was granted the right to sell the Quick Serve Restaurants.
Challenges:
- All stores were leasehold so the value was highly tied to operational profits, location, market & property condition
- The portfolio was in default with franchisor
- The food vendor was threatening to cut off deliveries
- The franchisor had closed approximately 14 locations
Solutions:
- Negotiated temporary franchise agreement with franchisor without needing to pay borrower’s pre-receivership franchise fees
- Re-opened the closed locations within 48 hours of the Receivership appointment
- Working with the franchisor, negotiated a plan with food vendor that reinstated deliveries without paying pre-receivership debt. This was accomplished within 7 days of re-opening
Results:
- Facilitated the sale of all locations just 80 days after being appointed receiver
- Client saved money and time by only having to deal with one contact for receivership, management, and disposition
- Improved profitability and fiscal control
- Portfolio risk was minimized by quickly selling the assets
Case Study #3
Services:
Interim Management, Brand Protection
Asset:
Gas & Convenience Stores, Restaurants, Laundromat
Trigild moves quickly to improve profit, maximize cash flow and avoid legal delays on a portfolio sale
Synopsis:
Trigild retained to operate a portfolio of gas & convenience store and restaurants—19 locations in Hawaii and the Midwest. Trigild’s role was to operate the stores during a pending sale that had been delayed while awaiting a court ruling.
Challenges:
- Maintain the asset’s operations, personnel, and brand identity during a transitional time
- Lack of credible financial records
- Lack of a strict cash policy
- Sarbanes-Oxley concerns
- Prevalent employee theft and morale problems
Solutions:
- Hired and maintained employees, made personnel changes as needed
- Reconstructed financial records to satisfy Sarbanes-Oxley
- Improved controls and profitability avoiding loss of value during a delayed sale due to pending legal decision
Results:
- Avoided any additional delays on the sale by satisfying Sarbanes Oxley financial requirements
- Avoided loss in value during legal delays
- Improved profitability and fiscal control
- Maximized cash flow to client
Case Study #4
Services:
Receiver Interim Management
Asset:
Gas & Convenience Stores
C&G Portfolio with environmental issues sells quickly for a fair price, while lender stays out of chain of title.
Synopsis:
Appointed receiver and management company of a portfolio of 8 gas & convenience stores in Southeast and Midwest.
Challenges:
All stores were closed or needed to be closed, due to substantial known and unknown environmental issues.
Solutions:
- Closed and secured all stores
- Aggressively marketed the properties as a portfolio with selected individual properties to get maximum return
Results:
- All stores sold “as is” for a fair price
- The lender never went into the chain of title
Case Study #5
Services:
Hotel Receivership
Asset:
Hotel
Trigild renegotiates costly capital improvements with luxury chain to assure note pay-off to lender’s satisfaction.
Synopsis:
A Trigild executive was appointed receiver of a luxury franchise hotel located in a major city.
Challenges:
Both the franchise and management contract were through a luxury chain that was planning very costly capital improvements that the receivership estate would have never been able to recoup.
Solutions:
Continuous and intense negotiations with brand / operator in which Receiver only agreed to expenditures that had an immediate and substantial return to the Receivership Estate.
Results:
The note was sold and paid off to the lender’s satisfaction.
Case Study #6
Services:
Restaurant Receivership, Management, Disposition
Asset:
Restaurants
Trigild turns around a portfolio of 40 QSR’s, sells all properties for several million dollars more than initial offers.
Synopsis:
Appointed receiver and management by Federal Court for 40 quick serve restaurants in 7 states. Court allowed receiver to sell assets.
Challenges:
- Over $1 million in unpaid payroll and vendor invoices
- Borrower had commingled funds with a different portfolio of assets that were not part of the receivership estate, although he had previously been instructed by the court to stop doing so
Solutions:
- Receiver successfully seized funds in all co-mingled accounts
- Negotiated favorable new terms with major suppliers
- Closed all leasehold sites that had a negative effect on the overall Enterprise Value of the restaurant portfolio
- Broke stores down into smaller asset groups to maximize sales price
- Retained auctioneer to facilitate speedy, profitable sales
Results:
- The assets were sold during the receivership period using a combination of auction and traditional sales method
- The total sales price was several million dollars higher than initial offers from single ownership entities
Case Study #7
Services:
Hotel Receivership & Management
Asset:
Hotel
Trigild turns around a hotel bypassed by the interstate, increasing revenue and profits to facilitate a favorable sale.
Synopsis:
Trigild named receiver and management company of a franchised hotel in a tertiary market in a town that the interstate had recently by-passed.
Upon arriving, the franchise did an inspection and the property failed due to multiple housekeeping, maintenance and franchise compliance issues. The insurance carrier also inspected the property and threatened cancellation if certain life safety issued were not corrected within 30 days.
Hotel marketing was practically non-existent due to dependence on freeway traffic. With freeway bypass, there was no traffic.
Upon arriving, the franchise did an inspection and the property failed due to multiple housekeeping, maintenance and franchise compliance issues. The insurance carrier also inspected the property and threatened cancellation if certain life safety issued were not corrected within 30 days.
Hotel marketing was practically non-existent due to dependence on freeway traffic. With freeway bypass, there was no traffic.
Challenges:
- Maintain franchise and insurance coverage without a large capital investment since both had failed recent inspections
- Increase market share, sales and profitability
Solutions:
- Efficiently corrected capital and safety issues at minimal cost utilizing Trigild’s team of operational specialists
- Changed several key management staff members and implemented a new hotel sales and marketing plan
Results:
- The hotel passed its franchise and insurance inspections and maintained its AAA standing
- Developed new sources of business which substantially increased revenues, market share and profits
- Hotel was sold as a REO property for a favorable sales price
Case Study #8
Services:
Bankruptcy & Management
Asset:
Restaurants
Trigild turns around a portfolio of 18 QSR’s, working with Franchisor and Trustee to complete sale to a new franchisee.
Synopsis:
A bankruptcy trustee was appointed over a portfolio of 18 quick serve restaurants in the Northwest. At the request of the franchisor, the Trustee engaged Trigild to operate the restaurants.
Challenges:
- The franchisee was significantly past due with the stores’ vendors
- There were no daily, weekly, or monthly operating systems or reports in place
Solutions:
- On behalf of the Trustee, Trigild secured all of locations, beginning with:
- Seizing current accounts
- Opening new accounts
- Hiring employees
- Assuming operations of the stores
- Seized and opened new accounts, and established daily reports that tracked revenues and expenses
- Negotiated "going forward" agreements with all vendors without paying pre-bankruptcy debt
- Closed all administrative offices, saving significant G&A dollars
Results:
- Successfully operated the locations
- Working with the Franchisor and Trustee, completed the sale of the restaurants to a new franchisee
Case Study #9
Services:
Long Term Hotel Management
Asset:
Hotel
Trigild turns around and creates a market leader from 30-year-old run-down beachfront hotel, increasing owner's profit by over 600% within 24 months.
Synopsis:
Trigild is hired to manage a 30-year-old independent hotel on the beach in San Diego. Despite a premier location, the hotel faced many challenges such as a much needed renovation, poor management, and a marketing plan that did not focus on the hotel's location. In addition, the hotel's internet presence was minimal at best.
ADR and Occupancy were far below competition, and it was clear the hotel was missing an opportunity. Upon arriving on the property, the Trigild team assessed both immediate and long-term changes required to increase revenue and make the hotel competitive.
ADR and Occupancy were far below competition, and it was clear the hotel was missing an opportunity. Upon arriving on the property, the Trigild team assessed both immediate and long-term changes required to increase revenue and make the hotel competitive.
Challenges:
- Increase market share and revenue
- Update the hotel's image
- Increase internet presence
Solutions:
- Trigild helped guide ownership in making renovation choices that would bring immediate positive impact for the hotel's bottom line profit, and oversee said renovations.
- Key management was placed at the property and assigned specialists from Trigild's headquarters to oversee marketing, technology, human resources, and accounting.
- Trigild developed and implemented a full scale new marketing program including a new hotel name, new signage, brochures, website and positioning statement.
- Revenue management was implemented on a daily basis to maximize the hotel's rate and occupancy within the market.
Results:
- By targeting the appropriate markets and aggressively marketing the hotel, Trigild substantially increased occupancy and the average daily rate resulting in a 60% market share increase.
- Net profit more than doubled in the first year and over 600% in the second year of Trigild's management.