Fortis Networks, Inc. was a general contractor that provided nonresidential construction services for commercial, federal and civil projects. After a period of declining business activity and lawsuits revolving around work performed for the U.S. Military, Fortis defaulted on several business loans. The lender was unsure if any funds could be recovered and needed a trusted partner to serve as a receiver.
Upon appointment, the team at Resolute quickly worked to secure company assets and determine the outlook of the enterprise. When the owner indicated his intention to wind down the business, Resolute worked to ensure a proper business closure was conducted. This included working with U.S. Military Bases to determine the status of construction projects and resolving any outstanding work that was contracted to be done. Resolute addressed and overcame complex challenges of legal action from the construction bonding companies. Though the goals of the secured lender and the bonding company were at odds, Resolute successfully negotiated the resolution of litigation involving several partially completed construction projects.
Resolute also worked to auction off all inventory, equipment, tools, vehicles, and FF&E for the benefit of the receivership estate.
As Resolute identified the scope of the receivership, it was discovered that there were additional assets within the same business operations. These assets were not part of the original receivership order and initially could not be utilized. Resolute successfully lobbied the Court to expand the receivership estate to include these assets. Liquidation of the assets, including real property, allowed for increased returns to the secured lender.
The real property became crucial to providing returns for the lender. The building was directly adjacent from the north runway of Phoenix Sky Harbor International Airport. The property fell within the City of Phoenix’s Comprehensive Asset Management Plan for Phoenix Sky Harbor International Airport, specifically within their Long Range Development Plan (10 to 20 years). Since the property was crucial to the City of Phoenix’s plan, they elected to submit an offer to purchase within 98% of full asking price. This resulted in moving forward with the city’s offer and was a successful outcome for all parties involved. This sale provided a return for the lender, despite the initial presumption that nothing could be recovered.