In
2004 I was engaged by a Tampa, Florida based 36-hole golf course while
its $5.2 MM bank loan was in recall by a major bank. The borrower had
fallen inside his DSR threshold for a period of time sufficient to trigger
loan default proceedings.
In
this case I was provided an office, and reasonable management authority.
I was able to comb through the entire operation from the kitchen to
the maintenance building. We were able to uncover enough waste and unnecessary
expense to warrant an application to refinance the golf course with
another lender.
For
the new lender, I prepared a business plan with spreadsheets showing
a new management strategy. We were able to demonstrate to the satisfaction
of the lender how our proven golf course management practices would
support a new loan.
We
were successful in obtaining a new finance package at $5.6 MM with better
terms than the loan being recalled. With additional refurbish money,
and implementing my business strategies, the course made a dramatic
business comeback.
I
visited the course on Friday, November 10 and it was in beautiful condition.
It was the busiest golf course in the entire Tampa Bay area. In fact,
there was not a single available parking place at the time I was there.
Mike
Kahn