Borrower & Lender Resolution

Situation at Engagement

The lender had filed foreclosure on a limited-service hotel after repeated debt-service shortfalls, accumulated default interest, and unpaid legal fees. The borrower wanted to retain the asset but had lost operational and reporting credibility with the bank. The situation needed a neutral, capable operator who could stand in front of the lender, take operating control, and demonstrate a credible cure path — fast enough to halt the foreclosure clock.

Strategic Interventions

• Interim operating control. SUNdhm took operating control of the property and the operating account on terms acceptable to both borrower and lender, providing the bank with a known, accountable operator of record.
• Reporting restoration. Stood up monthly P&L, weekly cash forecast, and operational KPIs in a format the special-assets group could act on. Closed the reporting gap that had eroded lender confidence.
• Operational stabilization. Reset revenue management, tightened payroll and controllable expenses, restored brand and franchise compliance, and brought guest-satisfaction scores back into acceptable bands.
• Structured cure with counsel. Worked with borrower’s counsel and the lender’s workout team on a structured cure that addressed arrears, default interest, and legal fees on a defined schedule.
• Continuous lender communication. Maintained a transparent line of communication with the bank throughout, so that every operating and financial decision was visible.

Results at Exit

• Action: Foreclosure discontinued
• Loan: Returned to performing status
• Arrears, default interest, legal fees: Cured
• Borrower: Retained ownership of the property

Outcome

The foreclosure action was discontinued, the loan was returned to performing status, and the borrower retained ownership of the property. The lender ended the engagement with a performing loan against a stabilized asset and a documented record of how stabilization was achieved.

Relevance to Distressed & Transitional Assets

This engagement illustrates an outcome that is often available when a borrower has genuine intent and capacity to retain an asset, but has lost operating and reporting credibility with the lender. With a neutral operator restoring control, transparency, and performance, foreclosure is frequently not the only path — and often not the best one for either side.