KOBRA PROPERTIES

Case Highlights

• Complex matter with multiple debtors and properties, with liens held by multiple lender groups
• Properties included franchise operations, apartment units, stand-alone restaurants and developments in progress

Case Narrative

In this complex matter, DSI assumed complete management control of four operating entities holding 80 different properties, with a concentration in stand-alone and franchised restaurants, many of which were leased by related entities.  The portfolio was encumbered by over 20 lending groups with multiple liens on various properties, aggregating over $500 million in debt. Further complicating the matter were bankruptcies and receiverships involving a significant franchisee tenant and other related entities.  DSI worked closely with lenders to create detailed property budgets and to monitor cash collateral and adequate protection payments, and worked with staff and lessees on day-to-day issues including leasing, sales and property maintenance.  DSI also worked with the property engineers, brokers, tradesmen and municipalities on winterization, insurance, bonds, occupancy permits and abatement and compliance issues. DSI conducted an extensive national marketing process. The portfolio was ultimately broken into parts that were either auctioned through the bankruptcy process or foreclosed on by the secured lenders.