Federal Court Receiver

Situation:

• Alleged Ponzi scheme
• New dollars pay off maturing investors and fund ongoing operations
• Eight institutional investors defrauded
• $1 billion investment

Goals:

• Maximize recovery for investors/creditors
• Sell 50+ assets worldwide
• Coal mines in China; 880 acres in Costa Rica; Timeshare project in Canada; oil and gas rights in Russia; real properties and notes in US
• Maximize the value of 275 life policies
• Pursue litigation

Results:

• To date $135 million of assets sold
• 237 life policies transferred to investors with a potential future value of $275 – $335 million
• Litigation is ongoing
• Potential recovery: in excess of 40%

Mosier & Company, Inc.

Federal Court Receiver

Situation:

• Alleged Ponzi scheme
• 100 investors defrauded
• Mostly pension plans for small companies
• A high-yield cash fund: insufficient to repay investors; new dollars used to pay off early investors and support operations

Goals:

• Maximize recovery for investors
• Sell notes receivable and real estate
• Sell untainted pension administration division
• Pursue litigation

Results:

• Pension administration business sold preserving legal status for dozens of retirement plans
• Recommend LIFO method of distribution due to poor
• books and records
• 42.5% recovery for the investors
• Two year administration

Mosier & Company, Inc.

Federal Court Receiver

Situation:

• Warehouse banking operation where individuals seek to avoid paying income taxes
• All records destroyed prior to appointment
• Over 800 participants in the program

Goals:

• Recover records
• Recover and sell assets
• Pay IRS liens and penalties
• Reconcile participant accounts

Results:

• Warehouse banking operation shut down
• Letter provided by a participant leads to recovery of several assets
• List of participants found
• Participants advised: change in tax status with potential, retroactive tax liability dating back several years

Mosier & Company, Inc.

State Court Receiver and Provisional Director

Situation:

• Dispute between two owners
• Specialty consulting business
• Claims and counter claims of abuse and misuse
• Lawsuits pending: request for dissolution
• 70 consultants caught in the struggle

Goals:

• Separate the two owners
• Divide the business
• Arrive at a buyout number for the owner who purchased the main business assets and attributes (location, telephone number, name, web site, etc)

Results:

• Negotiations: settlement reached in 3 months
• Buyout consisted of cash and note
• One party started a new, competing company
• Consultants choose which entity
• Receiver converted to Provisional Director
• Oversee implementation of settlement

Mosier & Company, Inc.

State Court Receiver

Situation:

• West Hollywood lofts condo project; 12 units
• 80% completion; stalled, over budget
• The bank: $9.5 million in the project
• The cost to complete: another $2 mil/6 months
• Condo financing required 50% of units to be sold before any financed unit could be closed

Goals:

• Get owner cooperation: release guarantees
• Select a general contractor and sales team
• Complete construction and then sell the units
• Obtain all necessary approvals including HOA
• Price the units to sell but maximize the recovery for the lender

Results:

• Construction completed on time (6 months) and on budget ($2 million)
• All documents and approvals obtained
• Initial lackluster broker changed
• Project sold out in twelve months
• Lender recovered 66% of its loan amount

Mosier & Company, Inc.

State Court Receiver

Situation:

• 12 of 24 units incomplete at 75%
• The cost to complete: $1.3 million and 6 months
• Owners cooperative with release of guarantees
• High desert pricing declined significantly (>50%)

Goals:

• Select a general contractor and sales team
• Complete construction and then sell the units
• Price the units to sell but maximize the recovery for the lender

Results:

• Construction: on time and on budget
• Sales lagged expectations
• Several price reductions
• Total lapse time: greater than 12 months
• Lender: recovered $2.7 million plus raw land

Mosier & Company, Inc.

State Court Receiver

Situation:

• Older 12-unit apartment complex
• Significant deferred maintenance
• Difficult neighborhood: drugs, prostitution, gangs
• Default by borrower
• Several Vacancies

Goals:

• Retain on-site Latino-speaking managers
• Lease out the project and improve security
• Offer competitive move in specials
• Resolve City code violations
• Perform selective maintenance and repair
• Upgrade rents in improved units

Results:

• All units leased: move-outs replaced timely
• Install security cameras, lights and new rules
• Improve grounds and physical appearance
• Continuous graffiti removal
• Selectively improved units with move-outs
• Coordinated a short-sale to get lender paid

Mosier & Company, Inc.

Federal Court Receiver

Situation:

• Owner/manager in default on loan
• Focus: immediate cash vs. long-term stability
• 30% vacancy and below market lease rates
• Deferred maintenance throughout
• Two of five elevators inoperable
• City mandated repairs/upgrades
• Keen interest in the property: age & location

Goals:

• Replace management and stabilize the project
• Improved lease rates and occupancy
• Address City code deficiencies
• Upgrade rents in improved units as appropriate
• Sell the building at the best price
• Cap rate: $17 million value vs. $41 million loan

Results:

• New on-site management
• Renovation experience
• Occupancy improved to 80%
• Lease rates returning to market
• National credit-worthy tenant selected for retail space suggesting an improved cap rate
• Technical problems resolved (elevators)
• Replaced boilers with city-provided steam
• Project sold for $35 million; 50% down and an owner-carry note

Mosier & Company, Inc.

State Court Receiver

Situation:

• Default on underlying mortgage
• Owner occupied 30% of the center
• Owner cut favorable deals with several tenants
• Deferred maintenance throughout
• Tenant unrest and revolt
• Some had stopped paying rent

Goals:

• Replace management and stabilize the project
• Improved lease rates and occupancy
• Upgrade rents in improved units as appropriate
• Stop the owner from interfering in the management of the property

Results:

• Locks changed on owner units
• Tenants resumed paying rent
• Owner contained and interference limited
• Project stabilized to facilitate foreclosure
• Foreclosure completed

Mosier & Company, Inc.

State Court Receiver

Situation:

• Stalled in the entitlement process
• Equity in the property
• Delinquent property taxes
• Property below the Delta flood level
• Requirement: a 20-foot high circumference moat
• Moat requirements: dewater the earth below
• Dewater options: deep dynamic compaction or over-easy excavation
• Large upside but huge infrastructure expense

Goals:

• Maximize recovery: 832 investors; $15.6million
• Conventional sales due to complexities of sale
• Work with the buyer to achieve a final map
• Deep dynamic compaction (DDC) to dewater
• Less costly than over-easy excavation option

Results:

• Sold project to Shea Homes
• $5.6 million (30% recovery)
• Sale contingent upon obtaining a final map
• Receiver/Shea got County Planning approvals
• Neighbors sold on DDC in exchange for a riding trail atop the maot

Mosier & Company, Inc.

State Court Receiver

Situation:

• Golf course underutilized: narrow fairways and incomplete infrastructure
• Public drive thru traffic created vandalism
• Home site development stalled: lack of funds

Goals:

• Maximize recovery for the 3,018 investors
• Pursue conventional sales method
• Complete course infrastructure (cart paths/sprinklers): enhance value
• Widen selected fairways by tree thinning
• Extend cart paths throughout
• Stabilize revenues: course improvements
• Limit vandalism: increased patrols and cameras

Results:

• Property sold to developer for $4.3 million
• Progress toward improving golf course
• Entitlements on home sites preserved

Mosier & Company, Inc.

Criminal Receivership

Situation:

• Roofing contractor accused
• $45 Million: Worker Compensation fraud
• Raid on residences and business
• Arrests and secure assets
• Determine business viability: owner absent
• Restitution claims: State; IRS payroll taxes due

Goals:

• Value all assets
• Secure and store all non-depreciating assets
• Complete roofing jobs were possible
• Collect accounts receivable without warranties

Results:

• Business seized and eventually wound down
• A/R collected, some involving litigation
• Personal assets held pending sentencing
• Case is on-going

Mosier & Company, Inc.

State Court Receivership

Situation:

• Judgment: investor in alleged fraudulent scheme
• Receiver: aid in execution of the judgment
• Corporations Commission: requested Receiver
• Which Receiver had priority over assets?
• Alleged offshore assets

Goals:

• Prioritize the Receiver for judgment creditor
• Trace and locate assets
• Liquidate known assets
• Make recommendations to the Court

Results:

• Business seized and eventually wound down
• A/R collected, assets sold
• Challenge by competing receiver defeated
• Off-shore asset tracing unsuccessful
• Business owner sentenced to prison in Utah

Mosier & Company, Inc.

Receiver in Family Court Sale of Real Property

Situation:

• Disputes errupt in 10 year-old divorce
• Former spouses: no agreements
• Court orders rental building sold

Goals:

• Stabilize tenant relations
• Address deferred maintenance
• Maximize value through auction sale

Results:

• Tenant issues resolved/stabilized
• Deferred maintenance addressed
• Property auctions for $4.3 million
• Exceed market comps by $1 million

Mosier & Company, Inc.

Receiver Medical Practice

Situation:

• 2 doctors cannot agree on spliting profits
• Disputes over operation of laboratory
• Dispute threatens profitability

Goals:

• Stabilize the current operations
• Equitably divide the practice
• Ensure medical procedures compliance

Results:

• Laboratory and practice stabilized
• Practice divided
• Patient records transferred
• Dispute resolved

Mosier & Company, Inc.

Court-Appointed Provisional Director (Ownership Dispute/Litigation) $11,000,000 Scrap Metal Processor/Dealer

Situation: This company generated an impressive volume but lost money because of poor controls. The business defaulted on a $1.2 million secured loan. A secured lender sought the appointment of a Receiver to see if the business could be salvaged. Robert P. Mosier was appointed Receiver. Results: Controls were put in place and the business’ cash flow was stabilized. An investor purchased 49% of the stock with an infusion of cash that (1) paid off the secured debt and (2) preserved tax NOL. Duration: 6 months. Orange County Superior Court Judge Robert J. Polis. James McShane, Esq., Sheppard, Mullin, Richter & Hampton, Counsel for Plaintiff; Gary Torpey, Esq., Counsel for Defendant. Project Coordinator: Craig M. Collins

Court-Appointed Receiver (Dissolution/Refinance) $35,000,000 Wheel Rim Manufacturer and Importer

Situation: The company defaulted on a $11.0 million secured line of credit. The relationship was contentious: the borrower had previously brought an unsuccessful lender liability action. Robert P. Mosier was appointed Receiver pursuant to the default provisions of a Chapter 11 Plan. Results: The Receiver sold unneeded inventory and equipment to pay down the loan. The balance of the note was paid by refinancing other properties owned by the Defendant/Debtor. Duration: 2 years. Los Angeles Superior Court Judge. Diane Wayne. Clifford Meyer, Esq., of Buchalter, Nemer, Fields & Younger, Counsel for the Bank, Edythe Bronston, Esq., Counsel for the Receiver.

Court-Appointed Receiver (Dissolution through Mediation) $9,000,000 Engineering Firm (Major Public Works)

Situation: The firm was forced to close its doors because of contract disputes on major projects. The firm was current on its $600,000 secured line of credit. Robert P. Mosier was appointed Receiver. Results: Maximized the value of the firm’s FF&E. Collected accounts receivable. Oversaw and settled litigation against several companies that contributed to the firm’s closure. A 99% recovery for the secured creditor, and a release of personal guarantees for the principals. Duration: 2 yrs. Orange County Superior Court Judge Dennis Choate; Camilla Andrews, Esq., of Ivanjack & Lambirth for Secured Lender. Leonard Schulman, Esq., of Marshack & Schulman for the Company.

Court-Appointed Receiver (Family Court) (Taking Control and Settlement) $27,000,000 Pacific Rim Cable Importing Business

Situation: A family-owned business (successfully run by one spouse) was caught up in a divorce. When the other spouse attempted to reassert control, the business declined rapidly. Robert P. Mosier was appointed Receiver. Results: The Receiver selected one spouse to run the business; the other served on the Board with the Receiver. Settlement was achieved by splitting the business: a consumer division to one spouse and the OEM division to the other. Duration: 6 months. Superior Court Commissioner Sheila Fell; Bruce Hughes, Esq. of Hughes & Hughes and Mark S. Lam, Esq. for the Petitioner; Bertrend Cottle, Esq. for the Respondent. Project Coordinator: Craig M. Collins

Bankruptcy Court Chapter 11

Situation:

• $295 million in securitized debt in default

  $20 million in mezzanine debt in default

  Rehab stopped when Lehman Brothers crashed

  Lehman stopped making rehab payments

  Mechanics liens caused technical default

  Servicer for lender seized cash flow

  Chapter 11 necessary to regain control of cash

Goals:

• Resize the securitized debt to $225 million

  Convert mezzanine debt to equity

  Sell the project to generate cash for creditors

  Inject $25 million of new value to complete rehabilitation

Results:

• Plan of reorganization approved in nine months

  Purchaser benefited from the resized debt

  New debt service fit within existing cash flow

  Related professional fees less than $1 million

  Weiland Golden Smiley Wang Ekvall & Strok LLP debtors’ counsel

Mosier & Company, Inc.

President & CEO

Chapter 11 Debtor

Situation:

• Operations Ceased and Board resigned
• Valuable IP aging and losing value

Goals:

• Sell remaining intellectual property
• Sue patent infringers
• Maximize recovery for creditors

Results:

• Claims reduced: $20 to $6 million
• Dental Intellectual Property sold
• Patent infringment suits paid off
• Creditors paid in full, interest pending

Mosier & Company, Inc.

Equity Receiver Retained in Bankruptcy

Situation:

• Auto spa defaulted: $2.2 mil note
• Owner filed BK to stay receivership
• BK Court retained Receiver: sell spa

Goals:

• Stabilize the business operations
• Bring business into legal compliance
• Auction auto spa to highest bidder

Results:

• Operations brought into compliance
• Health and safety violations cured
• Auction produces $3.4 million price
• Bank paid in full, surplus estate

Mosier & Company, Inc.

Examiner in Bankruptcy Court

Situation:

• Gravel Co. produces sludge
• Cleanup costs exceed $15 million
• Property owner sues to force cleanup
• El Toro files BK for protection

Goals:

• Confirm magnitude of the cleanup
• Confirm debtor in full compliance
• Make recommendations to the Court

Results:

• Cleanup costs verified
• Debtor has large preferential transfers
• Debtor refused to repay
• Chapter 11 Trustee appointed

Mosier & Company, Inc.

President & CEO of Chapter 11 Debtor

$27,000,000 Public Education Company Situation: In the 5th year of a stalled Chapter 11, the Board of Directors opted to sell/close the seven remaining schools to maximize the recovery for creditors. Robert P. Mosier was retained as President & CEO; Craig Collins served as Executive Vice President. Results: 4 schools were sold and 3 (with regulatory problems) were closed. Total recovery for the creditors: $6,600,000. Duration: 2 yrs. L. A. Bankruptcy Judges Lazarow & Ashland. Steve Smith, Esq., of Danning, Gill, Diamond & Kollitz, for Debtor; Fred Neufeld, Esq., of Milbank, Tweed, Hadley & McCloy for Secured Creditor (Union Bank). Project Coordinator: Craig M. Collins

Executive Vice President of Chapter 11 Debtor(Dissolution) $10,000,000 Private Four Year University

text-decoration: underlineSituation: This 90-year old University ran out of cash and its Board of Trustees opted to liquidate all assets for the benefit of creditors in a Chapter 11. Robert P. Mosier was retained as Executive Vice President; Craig M. Collins served as Assistant Vice President. Results: The University’s building, name, FF&E, student records, library, accounts receivable and other assets were sold at auctions for approximately $3,000,000 to pay creditors. Duration: 1 year. L. A. Bankruptcy Judge Thomas 0. Donovan; Counsel: Michael Lubic, Esq. and Matthew Lesnick, Esq., of Sonnenschein, Nath & Rosenthal LLP for the Debtor. Project Coordinator: Craig M. Collins

Chapter 11 Examiner (Divorce) (Valuation and Mediation) Construction Business and Real Estate Holdings

Situation: A five-year divorce was consuming a once-flourishing construction business. Disputes abounded regarding values of a dozen real estate holdings including partnership interests. Robert P. Mosier was appointed Examiner. Results: The Court adopted liquidation values for the assets. This set the stage for a protracted mediation before the Honorable Mitchell Goldberg who settled the case at 12:10 AM one Saturday morning following an intense, 3-day mediation. Duration: 9 months. Bankruptcy Judge Mitchell R. Goldberg; Bernard Leckie, Esq. & Lisa Roquemore, of Meserve, Mumper & Hughes, for the Petitioner; Robert Bachman, Esq. & William Brownstein, Esq. for the Respondent. Michael C. Walters, Valuations; Project Coordinator: Craig M. Collins

Turnaround Receivership Manufacturing Company Situation:

• Revenue decline 2001 – 2004
• $17.5 million to $3.5 million
• Losses: alarming $1 million/year
• Owners pumping in $100K/month

Goals:

• Return company to profitability
• Sell the business as a going concern
• Recapture owner loans and investment

Results:

• Revenues increased to $5.5 million
• Costs cut $1 million (mostly payroll)
• Business was sold and creditors paid in full
• Owners repaid loans + investment

Mosier & Company, Inc.

Provisional Director Family Business Dispute

Situation:

• Mother sells oil business to children
• Mother gets note, 20 year pay out
• Kids mismanage business, default

Goals:

• Stabilize the management
• Return the business to profitability
• Reinstate payments on the note

Results:

• Financial controls put in place
• Management disputes resolved
• Note payments resume
• Mother retakes control of the Board

Mosier & Company, Inc.

Probate Trustee Raw Land Entitlement

Situation:

• Largest Asset: 30 acres of raw land
• Current zoning: 1 house per 40 acres
• 401 neighbors oppose development

Goals:

• Turn the neighborhood around
• Achieve 45 half-acre lot zoning
• Maximize recovery for heirs

Results:

• Commission approved final map
• Most neighbors supported the plan
• Project sold to a nationwide builder
• Value enhanced: $1 to $3 million

Mosier & Company, Inc.

Temporary Trustee Probate Court

Situation:

• Dispute over living trust provisions
• Lucrative bagel business declining
• Four heirs couldn’t agree on anything

Goals:

• Turnaround and sell the bagel stores
• Provide accounting: pasts gifts
• Maximize remaining assets for heirs

Results:

• Business stabilized, eventually sold
• Estate tax returns filed; taxes lowered
• Real estate sold and allocated
• Prior gifts reconciled; litigation settled

Mosier & Company, Inc.

Court-Appointed Receiver (Turnaround Project to Avoid Dissolution) $11,000,000 Computer Main Frame Leasing Company

Situation: This once successful company was sold to a Vice President, and the seller took back a $1.0 million note. The new owner quickly lost financial control of the business and defaulted on a $1.6 million secured line plus the note to the prior owner. The Bank sought the appointment of Robert P. Mosier as Receiver. Results: After stabilizing the company’s cash flow, the Receiver negotiated a settlement where the prior owner returned to management. The secured loan was paid off, and the Bank rewrote a new line of credit. The customer later received the Bank’s “Borrower of the Year” award. Duration: 1 year. Orange County Superior Court Judge. Ronald P. Bauer; Eric Dean, Esq., of Arter & Hadden, Counsel for the Bank. Ed Terreri, Esq., Counsel for the Defendants.

Class-Action Lawsuit Dissolution Receiver

Situation:

• 5,200 elderly investors
• $110 million in total investment
• Management pursuing own agenda

Goals:

• Settle with management
• Sell land and sue aiding professionals
• Maximize recovery for investors

Results:

• Projects sold for $15 million
• Litigation settled for $15 million
• 15% to 20% recovery for investors

Mosier & Company, Inc.

Independent Fiduciary Federal Court Regulatory Action

Situation:

• Pension plan cash used to pay operation’s bills
• Department of Labor sues the fiduciaries
• Settlement to be implemented

Goals:

• Recover assets: several sources
• Initiate litigation for added recovery
• Maximize recovery: plan participants

Results:

• Assets recovered pursuant to plan
• Insurance litigation pursued and settled
• Plan Participants received 49.9% net

Mosier & Company, Inc.

Court-Appointed Provisional Director (Ownership Dispute/Litigation) $7,000,000 Sound System Manufacturer

Situation: Six years ago at the formation of this manufacturing company, the owners never finalized key incorporating documents. A dispute later arose over ownership (the documents showed the minority owner had 0.5%; the minority owner argued that he owned 50% to 60%). Litigation ensued. Robert P. Mosier was appointed Provisional Director. Results>: The Provisional Director stabilized management, and sought instruction from the Court to remove the company from the litigation. After a 3-week trial, the Court awarded 75% of the ownership to the minority owner. Duration: 1 year. Orange County Superior Court Judge Ronald C. Kline. Nick Yocca and Mark Skaist, of Stradling Yocca, Carlson & Rauth, Counsel for the Provisional Director.

Agent for the Defendant (Manage and Defend Litigation) $48,000,000 Office Building Mortgage and Lease

Situation: The owners/tenants of two 200,000 sq. ft. office towers in LA wanted to sue themselves to void their leases. The reason was hidden earthquake damage called ‘moment fracture’ with a projected repair cost of $20 million. Robert P. Mosier was retained as the landlord/agent to defend the leases. This unusual action, wherein the tenants of the buildings were suing themselves as owners, was upheld by District Court. Results: After a month-long trial, the Judge ruled conclusively in favor of the landlord/agent thereby sustaining the leases. Duration: 10 Months. JAMS Ret. Superior Court Judge Leon Savitch. Anthony Oliva, Esq. and David Zaro, of Allen Matkins, Leck, Gamble & Mallory, LLP. for the Landlord/Agent. Project Coordinator: Craig M. Collins

Accounting Special Master

Situation:

• $18 to $25 million alleged misspent
• County alleged in violation of GASB

Goals:

• Reconstruct revenue and expenses for 4 yrs
• Determine spending vs. formulas
• Report findings to the Court

Results:

• County spending lacked justification
• Future permit fees to be lowered
• Resignations: all levels of County

Mosier & Company, Inc.

Court-Appointed Provisional Director (Partnership Dispute/Buyout) Premiere Southern California Developer/Home Builder

Situation: Two partners of a development company were embroiled in a dispute over control. Gridlock ensued, and the company could not sell lots, deal with pending litigation and other key issues. Robert P. Mosier was appointed Provisional Director. Results: The Board set in motion a plan to keep the company moving forward while the litigation proceeded. This provided the framework that allowed counsel to settle the case via a buyout. Duration: 6 months. Orange County Superior Court Judge Randall Wilkinson; Ron Rus, Esq. and Randall Smith, Esq. of Rus, Miliband & Smith, Counsel for Plaintiff; Saul Pinto, Esq. and Mark Erickson, Esq. of Pinto, Gromet, Dubia & Worcester, LLP, Counsel for Defendant.

Consultant to the Board of Directors (Liquidation versus Going Concern Value) $120,000,000 Injection Molding Plastics Company

Situation: A publicly-traded company with cash flow difficulties had an offer to purchase its stock. Certain creditors objected saying that the liquidation of assets would bring more than the sale of the stock. Mosier & Company was retained to advise the Board on the potential recovery from a liquidation. Results: The Mosier & Company analysis concluded that the going concern value was in the best interests of creditors (and employees), and the Board accepted the offer to purchase the stock. Duration: 1 month. Board of Directors Acquisition Committee. Nick Yocca, Esq., of Stradling, Yocca, Carlson & Rauth, Counsel for the Board; Project Coordinator: Craig M. Collins.

Consultant to Law Firm Executive Committee (Voluntary Dissolution) Leading Orange County Law Firm

Situation: A leading, Orange County law firm (with over 45 attorneys plus support staff) decided to close. Mosier & Company was retained to assist in the dissolution. Results: Negotiated with key creditors to limit liability. Maximized the value of fixed assets and an extensive law library. Coordinated with counsel to maximize the collection of receivables without damaging attorney/client relationships. Cataloged and distributed 7,000 boxes of records to clients/attorneys. Closed 401-K plan. Filed final tax returns. Distribution of capital account to the partners. Duration: 2 years. Liquidation Committee comprised of four key partners. William Lobel, Esquire of Lobel & Opera: Lease Negotiations; Susan Gentile, Esquire: Accounts Receivable Collection.