1. 2How can the approaching bankruptcy of a property company managing flats be countered?

The company’s bank had contacted Comes Real, because a property company managing around 12,000 flats was in arrears and the bank suspected there to be a “black hole”. The atmosphere of trust between the bank and the company had already deteriorated to such an extent that building work in progress was no longer being financed. Bankruptcy was imminent. In a nutshell, our task was to “clarify the actual state of the company and to rescue anything that can be salvaged.”

We encountered this challenge in five essential stages:

  • We were actively involved in the running of the company as an interim manager, analysed the state of the firm and drew up a forecast of viability together with an auditing company.
  • As a go-between, we mediated communication between the company and its bank and thus built up the confidence necessary to be able to implement the rescue plan. This incorporated an appraisal of each and every property – an indispensable case of having to go into detail, which called for property expertise and specific know-how in field work.
  • We supported the company in the sale of extensive property assets, as well as in its subsequent quiet liquidation. At the same time, the operational units were integrated into a new management company so that almost all the employees could keep their jobs.
  • Finally, we introduced new management processes and vigorous quality control to prepare the new firm for the challenges to come.
  • The rescue plan was financed by an “emergency fund” provided by the bank and to which one of Comes Real’s interim managers had exclusive access under guarantee of proper use of funds.

The result from the point of view of the bank’s chairman

“Your inside knowledge was enormously helpful in the realisation of the project. Especially your assessment of the real worth of the property and its potential for rental income assisted in creating a viable rescue plan. Our confidence was bolstered by intensive communication, for example in the working committee involving bank and auditors. It is to your credit not only that your interim managers were able to increase rent revenue swiftly, but also that you could use your contacts to find potential buyers for the property.”