GlassRatner's Dan Berman, Sr. Managing Director, was interviewed by the Daily Tribune News on the ongoing recapitalization of the LakePoint Sporting Complex in Cartersville, GA. The sports complex filed for Chapter 11 Bankruptcy in June 2018, with Rimrock Capital Management retaining GlassRatner to assist in the recapitalization efforts. Read below for an excerpt on the article, and for the full article click here.
A FRESH START: Out of bankruptcy, LakePoint strategizes for 2019
By James Swift
Following six months of court filings, LakePoint Sporting Community — more specifically, LakePoint Land LLC and seven other subsidiaries — officially emerged from Chapter 11 bankruptcy proceedings on Dec. 21.
The end result of a half-year of debt restructuring, according to documents filed in the United States Bankruptcy Court for the Northern District of Georgia last year, is an "opening" balance sheet with total assets at about $57.6 million and equity around $54.6 million.
"This compares favorably to the pre-petition balance sheet," a Chapter 11 disclosure statement dated July 31 reads, "which had total assets and equity of approximately $2.8 million and negative $28.4 million, respectively."
GlassRatner Advisory & Capital Group LLC Senior Managing Director Dan Berman was brought in by Rimrock Capital Management — a California-based hedge fund that obtained legal ownership of LakePoint Land's property and other related assets in 2016 — to assist in LakePoint's recapitalization.
"We satisfied and finalized in all respects what was required by the process," he said. "That was finalized amongst the various parties to their satisfaction."
The eight entities — LakePoint Land, LakePoint Land III, LakePoint Land IV, LakePoint Services, LakePoint Sports South, LP Housing, LakePoint Hospitality and LakePoint Merchandise — all survived Chapter 11, Berman said.
"It's a reorganized entity … you emerge with a clean balance sheet, you're opening and you're doing business. That was a choice to reorganize through LakePoint Land."
That balance sheet restructuring, he said, was essentially an exercise in converting debt to equity. Operationally and organizationally, he said few things changed "behind the scenes" at LakePoint during the bankruptcy proceedings.
"In terms of our facilities, they're the same facilities, the sports assets at LakePoint," Berman said. "The real estate's the same real estate, the people on the ground managing the assets are the same folks continuing to manage and service … so there's really no changes."