Successful collaboration between Members Hoge Fenton and Bergman Dacey Goldsmith
"Bergman Dacey Goldsmith’s long-time client is a non-profit lender to housing projects in California. The lender found itself with a borrower who filed bankruptcy in Northern California. A parcel of land in Palm Desert (in Southern California) that has the right to build an apartment complex secured the lender’s loan.
BDG referred its client to Hoge Fenton to represent it before the Bankruptcy Court in Northern California. Sblend Sblendorio and Alex Ramon of HF represented BDG’s client.
The borrower sought to impose a debt re-structuring plan upon the lender and the other creditors. HF opposed the re-structuring until the borrower agreed that BDG’s client would be paid in full within a year of the Bankruptcy Court’s approval of the borrower’s re-structuring plan.
The plan obtained court approval.
The borrower recently located a buyer for the parcel of land. The Bankruptcy Court approved the sale with a closing date of the end of this month.
As a result of the sale, BDG’s client will receive all amounts owed to it, including principal, accrued interest, and all attorneys and costs—over $5.5 million US dollars. Only one other creditor, the county in which the parcel is located, will receive full payment. The remaining creditors will receive a very small percentage of their debts."