Court Appointed and Other Types of Fiduciary Services

Sugarman & Company LLP personnel have substantial experience in serving as court-appointed trustees, examiners, receivers and as third (tie-breaking) directors. In addition, we serve as assignees for the benefit of creditors. In all cases, our goal is to maximize net realizable value for all parties at interest.

Among the services we provide as court-appointed fiduciaries are the following:

Financial analyses
Property marketing
Cash flow models
Property sales
Creditor negotiation
Related assets sales

Management negotiation
Reporting to courts
Construction management
Business operations management
Rental income collection

Here are a few of our representative cases:

At the request of the primary lender for a $70 million real estate development company, Sugarman & Company LLP was appointed as Federal Bankruptcy Examiner. Within two weeks, we had made our preliminary report to the court, in which we identified and quantified the major problems facing the company, as well as possible preferences. We also assessed the use of fraudulent conveyances and reported to the court on the validity of the charges of malfeasance. Ultimately, our analyses became an integral part of the amended disclosure statement filed by the company and were used by the debtor and its creditors in settlement negotiations.
When the owner of a 750,000 square foot apparel mart in San Francisco was unable to service a $120 million loan, the secured lender began foreclosure procedures and requested the appointment of a receiver. A Sugarman & Company LLP partner was appointed receiver. Among his duties were managing cash flow, negotiating with creditors, contractors and special event promoters, and supervising staff. Sugarman & Company LLP staff met with more than 100 tenants to discuss past due rents, existing leases and alleged lease violations. He negotiated settlements from tenants against whom prior lawsuits were filed and initiated lawsuits against additional tenants for past due rents. We assisted in marketing the property and interviewed potential sales brokers. In all, Sugarman & Company LLP operated the property successfully for eight months without additional funding from the lender.