CASE STUDIES

CHALLENGE

ITT Educational Services, Inc., a for-profit technical school with 38 campuses nationwide and over 35,000 students, filed Chapter 7 Bankruptcy in September of 2016. Shortly thereafter, A&G was hired by the Lender, Cerberus Capital Management, to value the properties and was subsequently hired by the Trustee to dispose of 31 of the owned properties.

APPROACH

A&G devised a liquidation plan to pay back the Lender by March 15, 2017, through the sales of the property. We recommended marketing the properties individually, as opposed to a bulk buyer, and conducted a national marketing and sales campaign to sell them all.

RESULTS

The Lender was paid back in full on March 8, 2017. Several bulk bids were received in the $40–$45MM-dollar range. A&G sold the 31 properties, achieving sales prices in excess of $87,000,000; roughly 20% above the initial estimate of value.