NGA Role
• NGA was appointed receiver by the Common Pleas Court of Greene County, Ohio.
Problem
• Former owner of this business sold the operation but continued to hold a secured debt owed by the operation and also guaranteed the lease of the operating entity to it landlord. The secured creditor sought a receiver to operate the business while it determined if it desired to take the operation back and re-assume direct obligation under the lease or whether they preferred a sale or liquidation of the business.
NGA Solution
• NGA took over the operation of the business and determined the viability of the business as a going-concern.
• NGA worked with the tenants and with lease guarantor to stabilize the cash flow and allow the lease guarantor to determine its desire to re-assume the operating entity and lease.
• NGA sought third-party buyers for the operation as an alternative to the re-assumption by the lease guarantor.
• NGA worked with the landlord throughout this matter to inform them of the progress and seek their support of the ultimate solution that was approved the Court.
Outcome
• The lease guarantor ultimately decided to re-assume its ownership of the operating entity.
