A real estate land development company in Alberta owned several properties and was experiencing a liquidity crisis. After getting the development approvals needed to proceed with its projects the company was facing negative working capital and a large lawsuit which had caused three directors to exit the business.
With no direction and a complete lack of confidence in what to do and how to proceed there were requirements for litigation support, development planning review, funding sourcing, and additional cost reduction decisions to be made.
The company began efforts to become virtual by giving up the physical office space and reducing the monthly overhead costs. In addition, there were new funding deals needed and new ways to approach land sales and joint ventures to fund investment into infrastructure the company didn't have the resources to deal with.
Every aspect of the business needed to be improved or changed to adapt to the new demands placed on the company. This situation was especially sensitive to additional risk and exposure of potential mis-steps as there were over 800 investors who had participated in helping to fund the purchase of the properties.
A new strategy for dealing with the lawsuit was pursued along with sourcing new legal counsel. Several funding sources were also examined to provide both short term liquidity as well as larger longer term options. New real estate brokerage relationships were added to increase the market reach of the company to provide access to joint venture partners and increase the sale prices achieved in any outright project disposition.
The company was ultimately set up in a stronger financial position and was given the opportunity to pursue new value maximizing initiatives on behalf of the investors.