Crisis support and management | Finding an unconventional solution

A group owned by an oligarch from Moscow owned a building in a former Eastern European capital and was unable to sell it, because the return, i.e., the rent that the building yielded, did not justify the demanded sale price.

Accordingly, a suggestion was made to continue to find a buyer, despite the trouble, while advancing sale processes in two stages. The first stage would be the transfer of the building to a public traded shell company and raise financing against the cash flow from the building (it being occupied mostly by the government of that state, which had a good rating at that time), and the financing would be used to repay the loan to the owner. At the second stage, the plan was to sell the holding public traded shell company that would own the building.

Upon the completion of the stage of preparing a draft rating report for the building, before its transfer to a public traded shell company that had agreed to engage in the transaction, it was decided not to continue the move, owing to the wish of the oligarch to continue to safeguard his privacy, and the draft rating was used for getting the requested sale price.