Foreclosure is never a pleasant experience for any business. If you own a restaurant, it means not only that your property is in danger, but your ability to dig back out of debt and turn a profit can be in trouble. Fortunately, there are foreclosure alternatives worth considering. If you are facing foreclosure, restaurant receivership is an option that can…
Having a court appointed receiver take over restaurant management can be daunting. While you have a chance to nominate someone, the receiver is a neutral third party who does not answer to you. On the other hand, the right person will manage a property efficiently and ethically, using expertise that you may not have. You also…
Hotels, restaurants and nightclubs are often risky investments. The value depends on many factors: seasonal variations, optimization of location, shifts in clientele, and the general state of the economy. When properties start to lose value, creditors often look for ways to preserve and enhance the value of what they see as their investment assets. A federal…
When you need to select a court appointed receiver, you likely have many concerns. You want someone who will manage a property efficiently and ethically. In the meantime, you also need to ensure the person understands the industry well enough to respond to market pressures and influences. The receiver will function in the short term,…
Disagreements are common in the hotel business but any owner should want these to be resolved rather than have it be the downfall of an enterprise. It’s in the best interest of the business if parties agree or at the very least, have an understanding. Hotel receivership management can help bridge this gap, or at…
A receiver is someone who is appointed by the court to handle a property that is the subject of litigation. In the hotel business, for example, a lender might come after an entrepreneur who used the hotel he owns as collateral but has failed to repay his debt. In this case, both the lender and…
Typically a hotel receivership is put in place when a lender who holds the mortgage of the hotel, or investors who have put substantial amounts of money in to the business want someone such as a receiver to step in to preserve and maintain the asset and/or success and profitability of the business. In this…
Recent wisdom in the distressed hotel real estate asset sector suggests that there are a dearth of court appointed hotel receivers taking over a large number of hotels in default on behalf of lenders and special servicers throughout California. According to recent reports, the number of hotels in default or foreclosure throughout the Golden State…
If you are a lender, creditor or attorney representing one and are seeking to appoint a California hotel receiver as part of a pending foreclosure, learn more about the in and outs of receiverships at this event in Squaw Valley near Lake Tahoe on May 21, 2011. Chaired by Bruce Cornelius, who is an experienced…
Measure Twice, Cut Once As with all receiverships, it is especially critical for a Court Appointed Receiver in a limited-purpose capacity to have everything clearly defined and spelled out in the initial court order granting authority to appoint a Receiver. It is also best for the respective city or county legal counsel, who will be…