Boca Raton, FL, Aug 29, 2017: QuickLiquidity, a leading real estate private equity firm providing equity recapitalizations and subordinated debt on commercial real estate, has announced that it has been approved by the U.S. Bankruptcy Court in the Eastern District of Pennsylvania to provide $1 million of post-petition debtor-in-possession (DIP) financing to a commercial real estate investment fund in Chapter 11 bankruptcy.
The DIP financing is secured by a priority lien against the funds ownership interests in 5 properties totaling almost 500,000-square-feet between three office buildings and two retail shopping centers. The properties are located in Pennsylvania and New Jersey.
“The $1 million post-petition financing will provide the necessary capital to allow the fund to operate while pursuing a confirmable plan of reorganization” said A. Yoni Miller, Principal of QuickLiquidity.
QuickLiquidity has a tremendous amount of experience with purchasing and lending against commercial real estate assets through the bankruptcy court. This allows QuickLiquidity to understand and close complicated transactions quickly. Besides DIP financing, previous QuickLiquidity transactions through the bankruptcy court include acting as a Stalking Horse to purchase illiquid and non-controlling ownership interests in real estate partnerships. In one recent transaction QuickLiquidity acted as a Stalking Horse in a Chapter 11 bankruptcy in an effort to acquire a 40% ownership interest in a portfolio of over 20 single tenant Walgreens, with the portfolio valued at an estimated $130 million. QuickLiquidity increased the initial purchase price and made the debtor approximately an additional $5 million. In another recent example, QuickLiquidity purchased a 12.756% ownership interest in a 28,000-square-foot retail strip mall located in Mechanicsville, VA out of a Chapter 7 bankruptcy.
The borrower had received a term sheet from QuickLiquidity only one day after submitting their DIP financing request. The DIP financing was then funded within one day of the order being approved by the U.S. Bankruptcy Court. QuickLiquidity worked with the borrower and their attorneys to ensure the DIP financing was in full compliance with their operating agreements and the properties mortgages.
