Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)

Charles F. Wu

Case | HBS Case Collection | August 2016 (Revised February 2017)

Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)

Abstract

In 2011, Songy Partners, an Atlanta-based real estate developer, was facing three distressed investments within their portfolio each with distinct sets of challenges. Having weathered a myriad of issues during the global financial crisis that included operational shortfalls, failed partnerships, bankruptcies, lender consolidations, lagging tenant demand, low investment liquidity, and pending loan maturities, Songy needed a path forward for these three assets. Songy's lenders were threatening to foreclose on all three properties and also call on corporate guarantees. The case addresses Songy's decisions leading up to and during the crisis. Which of the firm's challenges might have been avoidable? Did the company have any leverage with its creditors? What tactics might the company employ to save its properties? Within this context, what are Songy's responsibilities to his investors?

Keywords: real estate; distressed debt; Global Financial Crisis; valuation; foreclosure; partnership; Partners and Partnerships; Valuation; Global Range; Insolvency and Bankruptcy; Property; Financial Crisis; Real Estate Industry; Atlanta;

Language: English

Format: Print

23 pages

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Citation:

Wu, Charles F. "Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)." Harvard Business School Case 217-012, August 2016. (Revised February 2017.)

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Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)

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Songy 2011: Restructuring to Survive (or, Surviving to Restructure?)

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