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Financial Services

SOLIC professionals have experience across both regulated and non-regulated financial services firms:

  • Deposit Based Banking Institutions
  • Mortgage Lenders
  • Consumer Debt
  • Hedge Funds
  • Private Equity

TAYLOR BEAN & WHITAKER MORTGAGE CORPORATION

Restructuring, Investment Banking, Asset Management

Company Description:

  • Taylor Bean & Whitaker Mortgage Corporation (‘TBW”) was the nation’s largest independent residential mortgage originator, headquartered in Ocala, Florida. The Company serviced $80 billion of mortgage loans and originated approximately $40 billion annually of mortgage loans.

Challenges Faced:

  • TBW was terminated as an approved servicer by Freddie Mac and Ginnie Mae and over $2 billion of TBW’s funds were frozen at Colonial Bank in connection with its seizure by the FDIC. TBW also owned various insurance companies, title companies, commercial real estate holdings, as well as Platinum Community Bank that was seized by the FDIC.

Solutions Provided by SOLIC Professionals:

  • Served as Chief Restructuring Officer and provided support personnel in connection with the Company’s Chapter 11 bankruptcy filing.
  • Coordinated and directed the administration of the Company’s Chapter 11 case, including assistance with respect to the preparation of bankruptcy schedules, statements of financial affairs and plan of reorganization or liquidation relating to the Company.

Result Highlights:

  • Oversaw the orderly disposition of approximately 4,500 foreclosed homes.
  • Post-bankruptcy, continue to serve as Liquidating Trustee and Chief Financial Officer.
  • Pursued significant litigation recoveries in order to maximize return to stakeholders including filing two of the largest accounting malpractice claims in history, as well as hundreds of avoidance actions.
  • Managed the wind-down, sale and transfer of $10 billion plus of mortgage loans.
  • Negotiated the resolution of significant governmental investigations and litigation matters.

GREEN BANK.

Investment Banking

Company Description:

  • Green Bank is a federally chartered region bank headquartered in Houston, Texas that focuses on the commercial and private banking needs of middle market businesses and high-net worth individuals.

Challenges Faced:

  • Greenbank was seeking additional regulatory capital in order to acquire discounted commercial loan portfolios from the FDIC as well as pursue regional branch acquisitions.

Solutions Provided by SOLIC Professionals:

  • Engaged as private placement agent to pursue pre-IPO institutional equity from private equity and specialty hedge funds.

Result Highlights:

  • Raised an aggregate of $100 million through the private placement of common stock of the Company with three private equity funds and a group of high net worth investors. The new capital was used to expand current operations, as well as to pursue growth opportunities, including bank and branch acquisitions, structured transactions and FDIC-assisted transactions.

GMAC RESCAP

Restructuring

Company Description:

  • GMAC ResCap was the second largest independent residential mortgage lender in the U.S., originating first and second lien residential mortgage loans through a nationwide network of retail offices, direct lending centers and internet sites.

Challenges Faced:

  • Negative impact caused by the downturn in the subprime and home building market.

Solutions Provided by SOLIC Professionals:

  • At the request of Cerberus (51% owner of GMAC), SOLIC professionals were tasked with oversight of ResCap’s warehouse lending and home builder portfolio.
  • Worked with management to create and execute a detailed risk mitigation plan and managed total aggregate exposure in excess of $15 billion including the orderly liquidation of the largest mortgage warehouse lending portfolio in the U.S.
    • Created a 70 person special assets team;
    • Developed collateral monitoring and exposure management systems;
    • Assisted with respect to the loan sale execution process responsible for disposition of over $3 billion of mortgages; and,
    • Negotiated and implemented bankruptcy strategies associated with maximization of value of distressed debt in connection with the largest subprime origination and homebuilder bankruptcies.

Result Highlights:

  • SOLIC professionals led the restructuring of more than $8 billion of loans that GMAC ResCap made to large national homebuilders, including on and off balance sheet financing arrangements.
  • Oversaw the loan sale execution process responsible for disposition of over $3 billion of mortgages.
  • Negotiated the restructuring and disposition of over 3,000 model homes, 10,000 lot options and thousands of acres of raw land.
  • The end result was a material reduction in ResCap’s losses (estimated to be in excess of $500 million in savings) and avoidance of its ongoing exposure to the historic volatility being experienced in the residential mortgage market during that time period through timely and orderly creative dispositions.

SENTINEL MANAGEMENT GROUP, INC.

Asset Management

Company Description:

  • Sentinel Management Group, Inc. is a $1.5 billion cash management firm.

Challenges Faced:

  • Appointed by the U.S. Bankruptcy Court for the Northern District of Illinois as financial advisor to the estate reporting to the court-appointed trustee.

Solutions Provided by SOLIC Professionals:

  • Assisted the trustee and outside counsel in: (i) the operation and management of the estate; (ii) identification and collection of all electronic and hard‐copy data; (iii) performing forensic analysis of historical trading, financing and customer account activity; (iv) tracing and identification of fund assets and development of accounting; and, (v) solvency and other financial analyses in support of legal action brought by the trustee against third parties.
  • Participated in presentations of factual information and analyses to the creditors’ committees and regulators, including SEC, CFTC and NFA.
  • Submitted declarations in support of litigation and served as testifying experts in current and contemplated litigation against third parties.

Result Highlights:

  • Successfully planned and managed the orderly liquidation of the assets of Sentinel.

MULTI-BILLION DOLLAR MULTI-STRATEGY HEDGE FUND

Asset Management

Company Description:

  • Multi-Billion Dollar Multi-Strategy Hedge Fund

Challenges Faced:

  • The Hedge Fund faced significant investor redemption requests during a time of significant softness in the pricing of its underlying assets. In order to appropriately meet redemption requests while not imposing asset losses on non-redeeming investors, the fund considered bi-furcation of the assets into a Redeeming and Non-Redeeming class.

Solutions Provided by SOLIC Professionals:

  • Served as an independent advisor to the Board of Directors to provide a review of the Fund’s approach to the restructuring process.
  • Provided additional financial advisory services, including: individually analyzed over 100,000 credit and credit derivative positions with gross notional value exceeding $1.0 trillion; with management, created distinct “representative portfolio” for allocation to redeeming share class; and, reported on fairness and equitability of transaction to fund directors.
  • Managed the orderly wind down and closure of two related funds.

Result Highlights:

  • Mitigated risk associated with investor concerns with independent review and validation of the value and merits of planned asset disposition strategy between two related funds, permitting time to dispose of assets in proper orderly fashion and permitting optimal recovery on the inter-related investments.

$2 BILLION MULTI-STRATEGY HEDGE FUND

Asset Management

Company Description:

  • A Chicago based hedge fund (the “Hedge Fund”) that manages over $2 billion of assets, invests in public equity and alternative investment markets and utilizes various strategies for hedging its investments.

Challenges Faced:

  • SOLIC professionals were engaged on two separate occasions:
    • The first engagement provided litigation support in response to an involuntary Chapter 11 petition by two of its largest investors for among other things, lack of transparency and failure to honor redemption requests.
    • The Hedge Fund engaged SOLIC professionals a second time upon default of its $1.2 billion loan facility.

Solutions Provided by SOLIC Professionals:

  • Provided financial litigation support that defended the Hedge Fund’s position with an outcome that avoided a Chapter 11 bankruptcy.
  • Conducted investor road show presentations that provided updates on asset positions and fund activities.
  • Instilled credibility and confidence with the lender and investors by providing full transparency of fund activities and updated asset balances that avoided a bankruptcy or foreclosure actions.

Result Highlights:

  • Negotiated a disposition and wind-down strategy that was agreed upon by the lender and the Hedge Fund resulting in a significant recovery for the lender.

NATION’S LEADING PROVIDER OF MORTGAGE PROCESSING SERVICES

Restructuring

Company Description:

  • The nation’s leading provider of mortgage processing services, settlement services, and default solutions.

Challenges Faced:

  • Needed assistance to prepare a response to state and local regulatory agencies regarding potential miscalculations of mortgage and recording taxes and related fees for loan closing transactions.

Solutions Provided by SOLIC Professionals:

  • Engaged as financial advisor to the Company to assist with financial and litigation support.
  • Conducted a review and assessment of over 500,000 mortgage closing transactions in response to state and local government complaints.

Result Highlights:

  • Provided the Company with numerous operational and systematic process improvements for future mortgage closing transactions;
  • Provided analysis, in comparison to the Company’s internal audit team, that reduced its financial exposure by 45%; and,
  • Assisted the Company with a successful negotiation with state and local regulatory departments and avoided a wide-spread multi-state complaint/action.

CREDIGY

Investment Banking

Company Description:

  • Credigy owns and manages portfolios focusing mainly on U.S.-based distressed consumer receivables, utilizing a unique web-based servicing and collection platform.

Challenges Faced:

  • The Company’s founders had invested extensive amounts of capital in the founding and growth of the company. In addition, they were seeking additional sources of capital to continue acquiring portfolios of charged off consumer debt.

Solutions Provided by SOLIC Professionals:

  • Retained by the Company founders to explore a sale or recapitalization.

Result Highlights:

  • After successful execution of a competitive solicitation process led by SOLIC professionals, Credigy was acquired by National Bank Financial (NBF), a subsidiary of National Bank of Canada.

ATLANTICUS HOLDINGS CORP.

Investment Banking

Company Description:

  • Jefferson Capital was a wholly owned subsidiary of CompuCredit Inc. (now Atlanticus Holdings Corp.) that purchased charged-off consumer receivables. The Company managed a 300-person collections center in St. Cloud, MN.

Challenges Faced:

  • CompuCredit made a strategic decision to deemphasize its management and collections of non-performing consumer credit in order to grow its subprime consumer portfolio. As a result, it sought to sell Jefferson Capital and redeploy this capital into subprime programs.

Solutions Provided by SOLIC Professionals:

  • Retained to explore a sale of the Jefferson Capital subsidiary. SOLIC professionals ran a discrete but highly competitive solicitation process.

Result Highlights:

  • After a competitive solicitation process, Jefferson Capital was acquired at an attractive valuation by Encore Capital Group, a leading purchaser of charged-of consumer receivables, resulting in realized proceeds in excess of targeted valuation, facilitating the recapitalization of Atlanticus’ growth segment.

CONVERGENT RESOURCES INC.

Investment Banking

Company Description:

  • Convergent Resources Inc. (“CRI”) was a leading provider of outsourced Accounts Receivable Management (“ARM”) services with specialized expertise in consumer accounts in the utility, credit card, telecommunications and healthcare industries with over $100 million of annual revenues.

Challenges Faced:

  • CRI’s equity sponsors had facilitated the build-up of the Company over a seven-year period and were seeking liquidity for their investment.

Solutions Provided by SOLIC Professionals:

  • Retained to explore a sale or recapitalization of the Company on behalf of its private equity sponsors.

Result Highlights:

  • Orchestrated a competitive solicitation process resulting in a successful sale to Silver Oak Business Services Partners.

OCALA FUNDING, LLC

Asset Management

Company Description:

  • Ocala Funding, LLC was a 100% wholly owned bankruptcy remote subsidiary of Taylor, Bean & Whitaker Mortgage Corp. (“TBW”), the largest independent mortgage originator in U.S. originating $40 billion of residential mortgages annually. Ocala Funding was created as a special purpose entity of TBW to issue commercial paper to the some of the world’s largest financial institutions to purchase mortgage loans originated by TBW.

Challenges Faced:

  • In August 2009, TBW was seized by the FBI for a massive fraud that, among other things, diverted billions of dollars from Ocala Funding. As a result, Ocala Funding’s creditors were left with substantial shortfalls in collateral to secure its $1.75 billion commercial paper facility.

Solutions Provided by SOLIC Professionals:

  • In conjunction with Ocala Funding’s filing for Chapter 11 bankruptcy protection, SOLIC professionals were retained to serve as Chief Restructuring Officer and associated support staff in order manage the debtor and oversee the wind-down and liquidation process. During the course of the engagement, SOLIC professionals:
    • Provided strategic oversight, back office administration, and litigation support for recovery of Ocala Funding’s assets.
    • Facilitated and coordinated strategic discussions amongst a large group of stakeholders, which include major financial institutions and government entities.
    • Facilitated the oversight and monitoring of $45 million loan portfolio for the benefit of the secured lenders.
    • Received court approval for Chapter 11 liquidation plan pursuant to which a SOLIC professional is currently serving as Litigation/Liquidating Trustee.

Result Highlights:

  • SOLIC professionals developed and implemented alternative recovery plans based on creative litigation strategies including the prosecution of one of the largest accounting malpractice actions in U.S. history, as well as pursuit of over $1 billion in avoidance actions, resulting in significant recoveries for the estate.

BAYOU FUNDS

Asset Management

Company Description:

  • Bayou Funds was a $450 million Hedge Fund.

Challenges Faced:

  • Bayou collapsed and filed for bankruptcy protections after the two founding partners revealed they had inflated profits and did not have the $450 million in assets they had represented to investors.

Solutions Provided by SOLIC Professionals:

  • Appointed by the U.S. Bankruptcy Court for the Southern District of New York as financial advisor to the estate of Bayou, reporting to the sole managing member of the estate.
  • Assisted the sole managing member in recreating the financial books and records of this failed fund, obtaining necessary hard-copy documentation, performing forensic analysis on historic fund assets, and tracing of investors’ contributions and redemptions.
  • Developed financial models which were used in valuing and determining the proper equitable reallocation of estate assets to fund investors.
  • Met regularly with the estate’s counsel, government representatives including the Federal Bureau of Investigation, and the fund’s creditors’ committee to assist the sole managing member in the appropriate wind down of the fund.

Result Highlights:

  • SOLIC professional assisted in achieving a disgorgement of certain assets from prior fund managers and investors and facilitated court settlement optimizing recoveries for defrauded investors.

MAJOR REAL ESTATE PRIVATE EQUITY FUND WITH OVER $15 BILLION OF REAL ESTATE ASSETS

Asset Management

Company Description:

  • A major real estate private equity fund with over $15 billion of real estate assets (“the Fund”) comprised of Class A trophy Commercial office towers.

Challenges Faced:

  • The Fund experienced a significant decline in the real estate market that led to defaults on a number of real estate loans and discontent among the Fund’s investors.

Solutions Provided by SOLIC Professionals:

  • Engaged to assist in the workout of $7 billion of senior and mezzanine debt related to 40+ Class A trophy Commercial office towers in New York, Washington, D.C., Boston, Chicago and Los Angeles.

Result Highlights:

  • On behalf of the Fund, led negotiations with major financial institutions in connection with the capital restructuring of such properties, and assisted in developing a restructured relationship between the fund manager and limited partners that allowed limited partners to maximize their recoveries.

SAGECREST II, LLC

Asset Management

Company Description:

  • SageCrest II, LLC (the “Fund”) was a $750 million hedge fund that focused on providing mezzanine financing to borrowers in five core areas: specialty finance, life insurance-related products, corporate, mortgage and real estate products, and specialty finance. At the time of its bankruptcy, the Fund had debt or equity interests in a wide range of financial and real estate assets including life settlements, hotels, golf courses, and commercial loans.

Challenges Faced:

  • The Fund’s loan portfolio incurred extensive losses in the wake of the 2008 financial crisis which resulted in a series of lawsuits from investors that required the Fund to seek bankruptcy protection.

Solutions Provided by SOLIC Professionals:

  • Retained by investors and appointed by the bankruptcy court to manage the Fund operating in Chapter 11.
  • Responsible for management of the fund including overall responsibility for performance improvement of operating assets (three hotels, a condo development, a golf course among others) in addition to raw land assets, a life settlement portfolio, asset-backed loans and corporate loans.

Result Highlights:

  • Post-bankruptcy, SOLIC professionals were retained as Liquidating Trustee and asset manager to run-off the remaining portfolio pursuant to an orderly liquidation plan designed by SOLIC professionals to monetize a large portfolio of disparate assets after being optimally positioned for sale to a variety of strategic and financial buyers.

MORTGAGE LENDERS NETWORK USA, INC.

Asset Management

Company Description:

  • Mortgage Lenders Network USA, Inc. (“MLN”), based in Middleton, CT, was an originator of approximately $25 billion per year of subprime residential mortgages.

Challenges Faced:

  • As a result of the 2008 housing downturn, the Company experienced a significant increase in defaults and loss of funding sources requiring it to seek bankruptcy and an orderly liquidation.

Solutions Provided by SOLIC Professionals:

  • SOLIC professionals were retained by GMAC-RFC, the residential funding division of GMAC, to develop strategy and executed the recovery plan for in excess of $1.5 billion of warehouse loans associated with MLN and its affiliate EMAX.

Result Highlights:

  • SOLIC professionals negotiated on GMAC-RFC’s behalf a settlement agreement allowing GMAC-RFC to maximize its recovery through a Chapter 11 Plan of Liquidation resulting in a SOLIC professional serving as Liquidating Trustee. During the bankruptcy, SOLIC assisted in taking back hundreds of millions worth of underlying mortgage loans pledged as collateral which were then sold through bundled secondary market trades, optimizing recovery for the stakeholders.

A $14 BILLION HEDGE FUND FAMILY

Asset Management

Company Description:

  • A $14 billion hedge fund family (“the Fund”)

Challenges Faced:

  • The Fund experienced a significant decline in performance resulting in a number of investors requesting redemptions. Given the adverse impact liquidation would have on realization of asset values, a bifurcation of the Funds into a group of liquidating funds and go-forward funds was considered.

Solutions Provided by SOLIC Professionals:

  • Engaged to oversee the asset bifurcation process to ensure fairness in the allocation of assets (including hard-to-value illiquid assets), determine the viability of the new go-forward fund, and to ensure proper communication with all investor groups with respect to the restructuring alternatives.

Result Highlights:

  • SOLIC professionals facilitated the orderly and equitable liquidation of the Fund’s flagship fixed income hedge fund optimizing recovery for the Fund’s limited partners.

Representative experience includes transactions led by SOLIC professionals at predecessor firms