Troubled Facility Workout Services
Recently, several correctional facility financings have become non-performing and/or on the verge of default. Among the reasons for this are; low occupancy, an inadequate payor mix, operational issues, excessive operational expenses, improper financing structure and poor overall transaction economics. Ø A thorough analysis by an experienced firm like CFCS is required to help identify the true underlying issue(s) causing the performance difficulties. Often times, the major factors affecting a facility's performance are more complicated then they appear upon initial review. Ø Once the issues are identified and their root cause known, CFCS can lead the development of an all encompassing long term solution and action plan. This plan can include, among other items, a suggested restructuring of the financing, a revised operating model and changes to the management of the facility. Ø CFCS will act as project leader and work with bondholder’s, issuers, insurers, governmental or private operators, local government and the rest of the parties involved to implement the agreed upon solution in the most timely manner possible. |
