Tax Exempt Bonds and Tax Credits

If  you have a defaulted tax exempt bond and/or tax credit financed property you know how complicated, time consuming, frustrating and expensive it can be to implement a resolution. Even in the best of times when there are willing and able participants and the capital markets are functioning, these deals are very challenging to resolve. With the current state of capital markets in which there are very few alternative credit enhancers and tax credit investors, it seems almost impossible to execute a take out of the existing participants.

With current credit enhancers, construction phase letter of credit providers (if it was a new construction deal), tax credit syndicators and tax credit investors  practically paralyzed by the fear of making a “bad” decision, the attempts to execute a workout may seem futile. Add to this mix the army of attorneys involved in any such deal and the minefield of Internal Revenue Service issues and you have the makings of a very bad day.

The founders of Abacus Financial have extensive experience in workouts of defaulted tax exempt bonds and tax credits. They have resolved hundreds of million of dollars of such deals. Abacus has the technical know how and industry contacts and credibility to find a solution to these uniquely special situations.

Furthermore, unlike many advisors and consultants, Abacus understands not just the financial structure, but we have an in-depth practical operational understanding of the underlying real estate issues.

Abacus offers a range of solutions to your complex situations.

Abacus can negotiate a purchase of the bonds and tax credits by your designated alternative investor or by using its vast network of investors and secondary market purchasers. We have found that many lenders and tax credit investors are more willing to work through an intermediary such as Abacus than with the borrower and property owner.

As you know too well, in most cases the people who originated your deal are not involved in the workout and the special servicers or asset managers have a negative view of the defaulted borrowers. Abacus can help to focus the negotiations on the real economics of the situation and avoid the personal conflicts.

Abacus can acquire the underlying real estate project and then implement its won workout with the lender and tax credit investor. In this case, you can avoid income from debt forgiveness and transfer to Abacus the daily challenges of dealing with angry lenders and tax credit investors.

Finally, Abacus can provide to you comprehensive financial advisory services to develop and execute a financially feasible workout strategy. Abacus will conduct a thorough analysis of the real estate and the existing financing structure. Abacus will then present for your approval a proposed workout plan and then undertake the negotiations with the interest participants to implement the workout plan.

Please call or e-mail one of our specialists today to discuss your situation and determine how Abacus can best help you down the road to relief.