Business

Investor Lending Services and TRED Holdings, L.P. (ILS) is a finance company specializing in lending to real estate investors. ILS, with corporate offices in Houston, provides loans throughout Texas, Missouri, Louisiana, Alabama and Georgia.

Client Objective

Declining residential real estate values and the downturn in the economy resulted in substantially higher defaults and foreclosures, and eroded the value of loan collateral. ILS defaulted on its $30 million senior facility, and the Company’s agent lender required an exit strategy.

Results

White Oak Group advised ILS in negotiating a forbearance agreement with the lending group and assisted management in operating the business within negotiated liquidity constraints. In conjunction with the forbearance, ILS lenders funded the conversion of foreclosed properties into revenue-producing rentals. Revenue from income-producing properties, combined with REO (real estate owned) sales supported debt service in a restructured senior facility. This restructuring facilitated an exit for the agent lender and provides additional liquidity for ILS to originate loans, insuring the continuity of the platform and business, its ownership and management team.

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