Capital Underwriters Fund
Capital Underwriters Fund is a chapter 11 specific fund specializing in all aspects
of chapter 11 real estate financing. We specifically fund Super-Priority Loans,
secured note purchases, equity (new value) as well as take out loans for properties
in chapter 11 and are credit enhancers who sign and guarantee real estate loans
as part of a plan of reorganization.
Unlike conventional lenders, our philosophy
is driven by an understanding that the safest place to invest a real estate dollar
is in a chapter 11 case where full disclosure of the ongoing income and expenses
of the real estate project (in the form of the monthly reports filed under penalty
of perjury with the US Trustee) offer a true real-time read as to the economic
status of the property.
Safe in the knowledge that the numbers are real, we understand
that each chapter 11 presents its own unique set of circumstances and opportunities
which bare themselves as the case progresses. Deals are made in chapter 11 by demonstrating
to creditors that a source of financing is standing side by side with the property
owner and that entering into negotiations with the property owner can bear fruit.
To that end, Capital Underwriters Fund joins the property owner at the outset, underwrites
the project for our financing and is incorporated into the plan of reorganization
putting your secured creditors on notice that a confirmable plan is on file, foreclosure
is not an option, and that they may have to remain your lender over their own objections
unless a deal is cut with you to cash them out. We stand at the ready to cash them
out and enter a case knowing that the deal to be cut most likely will not reveal
itself until the chapter 11 is reaching its conclusion. Opportunity-driven and patient,
Capital Underwriters Fund provides the financing needed to restructure your real
estate debt.
Capital Underwriters Fund: Types of Chapter 11 Financing
Super-Priority Loans
Super-Priority Loans are loans in chapter 11 that subordinate existing secured lenders
to the new financing. Capital Underwriters Fund specializes in Super-Priority Loans.
Take-out Financing
Although a chapter 11 case often results in opportunities to
take-out your lender at a discount, the impaired nature of your credit often precludes
your ability to take advantage of the opportunity. Capital Underwriters Fund is
a source of take-out financing for chapter 11 real estate.
Note Purchase
Capital Underwriters Fund purchases notes in conjunction with you.
New Value
New Value is the chapter 11 term for equity that is sometimes required to confirm a plan of reorganization.
Capital Underwriters Fund is the source for New Value in your plan of reorganization.
Credit Enhancement
Capital Underwriter Fund will sign and guarantee loans in conjunction
with you as part of your plan of reorganization or provide a Letter of
Credit as a credit enhancement .