How One Borrower Regained Control and Closed on Their Terms
When one of our recent clients—a Florida-based real estate investor—filed for Chapter 11, they did so to prevent a foreclosure and buy time to restructure. Their asset had value, but their lender had pulled out of a planned refinance just days before maturity.
With a tight court deadline and no viable financing alternatives, the borrower was at risk of liquidation—even though the property had more than $1 million in equity.
The Challenge
- Asset: Retail center with high occupancy
- Location: Suburban Florida, strong traffic and tenant mix
- Loan: Maturity default with foreclosure initiated
- Status: Mid-Chapter 11, plan nearly confirmed
- Obstacle: No capital to satisfy plan or stop legal action
Traditional lenders declined the file due to timing, bankruptcy status, and legal complexity.
Our Approach
Edgewater Lending underwrote a 12-month, interest-only bridge loan, secured by the property. We worked directly with the borrower’s legal team to structure the loan in line with the plan and bankruptcy court requirements.
We were able to:
- Close in 13 business days
- Fund escrow in time for plan confirmation
- Preserve the borrower’s equity and legal control
The Outcome
- The borrower exited Chapter 11 cleanly
- Foreclosure was dismissed
- The property was later refinanced at a higher valuation
- No distressed sale. No equity loss.
Lessons Learned
Bridge capital—when structured correctly—can give bankruptcy debtors the leverage and flexibility they need to stay in control and protect long-term value.
If you’re in a similar position, we’re here to help evaluate whether our solution fits your strategy.
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