Time is one of the most valuable resources during a workout. Many restructurings fail simply because the company runs out of time before the relevant information has been evaluated and negotiations are completed. The time available to the company before it runs out of cash, or the confidence of its customers and suppliers evaporates, needs to be assessed early in the restructuring and every attempt should be made to deliver a solution within that period. As soon as it becomes apparent this may not be achievable, banks need to explore ways of extending the time available.

Corporate distress situations are characterised by uncertainty and instability. The key contributor to the crisis tends to be a ‘liquidity crunch’, whereby the company experiences severe cash shortages. This constrains the company’s ability to carry on operating normally. An assessment of the company’s short-term liquidity position, and meeting the cash needs identified, is necessary if stability is to be attained, so that the loan workout can be transacted effectively.

While our forays into landscaping, tree growing, and general contracting were educational and largely fun, we are no longer involved in those activities. For instance, despite all the advantages of our own group of companies having an in-house landscaping company, the forward planning and logistics required to keep 18
men and a fleet of machinery efficiently deployed on a wide range of projects is enormous. Randy would be on-site at 5 A.M. and not get home until late. His focus on keeping that team usefully deployed prevented him from doing more interesting—and ultimately more lucrative—things elsewhere.

In a wise move, like so many people from all walks of life before us, we decided to divest ourselves of all noncore activities, and focus again on what we know best: smart real estate deals where we have identified a twist that we can capitalize on to vastly increase value. Best Choice Properties continues to work with equity partners from all over the world to create value with real estate transactions that are, in general, a lot of fun.