August 2016
Teaching Note
HBS Case Collection

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

By: Charles F. Wu and Alexander W. Schultz

Format:Print
| Language:English
| Pages:9

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 which 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

Distressed Debt; Real Estate; Limited Partners; Cap Rates; Partners and Partnerships; Valuation; Investment; Property; Borrowing and Debt; Real Estate Industry; Atlanta

Citation

Wu, Charles F., and Alexander W. Schultz. "Songy 2011: Restructuring to Survive (Or, Surviving to Restructure?)." Harvard Business School Teaching Note 217-014, August 2016.