Industry: Real Estate; Development
Challenge: A luxury resort and residence just outside of Las Vegas filed for Chapter 11amidst an immense drop in property values during the Great Recession. As part of the Plan of Reorganization, a Creditors Trust was created to pursue certain large litigation against the owners and operators of the Trust to recoup losses.
Solution: Certain CRS professional/s manage the day to day operations and finances of the Trust and initiated over a hundred claim objections totaling more than $50M.
Results: Through years of negotiation and litigation, the Creditor Trust has settled the major insider action as well as the largest class of unsecured claims and, consequently, returned a material dividend to creditors.