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Bankruptcy Consultant Announces Super Priority Loan Subordinating $11M Mortgage

San Diego, CA - March 25, 2011 -- Capital Restructure Group a Bankruptcy Consultant service and chapter 11 consulting firm announced today that the bankruptcy court in the southern district of California has approved a $2.1M super-priority loan for a Capital Restructure Group client on a development project in San Diego, California.

Prior to their filing Chapter 11, the Development Company Board of Directors contacted Capital Restructure Group to seek the firms' assistance in restructuring their corporate debt and in obtaining financing to complete a $16M real estate development project in San Diego, California. Before contacting Capital Restructure Group, the Development Company had failed in its negotiations with the Bank to have the Bank fund the balance of the construction monies needed to complete the project and the Company was leaning toward allowing the Bank to foreclose on the real estate.

Capital Restructure Group proposed a strategy to the Development Company whereby the Company would file a chapter 11 and seek bankruptcy court approval of a $2.1M super priority loan to complete construction of the project. A super-priority loan is a loan in chapter 11 that enables the new lender to subordinate the existing mortgage lender to the new loan, which in this instance was an $11M construction loan that had come due and that the Bank had recorded a notice of sale on to foreclose the Property.

Contemporaneously with the recordation of the Notice of Sale, the Bank had also filed a motion in state court to appoint a state court receiver, and to physically remove the Development Company from the property and remove it from any and all management of the property.

The initial Capital Restructure Group strategy which was followed by the Board of Directors resulted in their filing the chapter 11 to stop the appointment of the state court receiver, and to stop the foreclosure of the real estate. After stopping the bank in its tracks, the Development Company followed through with the global Capital Restructure Group strategy and filed a motion for and received court approval of a $2.1M super-priority loan to complete the construction of the project.

Had the Board of Directors not contacted Capital Restructure Group and followed its advice, their $16M project would have been lost.

Capital Restructure Group is a Bankruptcy Advisory and Consulting firm consisting of businessmen whose focus is the restructure of corporate and real estate debt both in and out of chapter 11.

Capital Restructure Group is not only a consulting firm but a source of debt and equity financing for businesses, real estate developers and investors in chapter 11.

The Capital Restructure Group principals have unique expertise in the complexities of modifying and restructuring corporate and real estate debt and have a client list of real estate investors, developers and business owners nationwide. The focus of the Company is to take the business issues that make up a chapter 11 bankruptcy or a chapter 11 pre-negotiation out of the hands of the lawyers, and to return the negotiation of the business issues back into the hands of seasoned businessmen, where they belong

We are businessmen who think and act like businessmen, the only difference between us and you is we have strategized in and written over 300 bankruptcy reorganization plans and moreover, as principals have successfully restructured our own businesses and real estate projects through chapter 11: We understand every single facet of the process, and will direct the strategy for you, reduce the costs, and not let the lawyers run your life or ruin it.

A properly structured Bankruptcy or the mere threat of properly structured bankruptcy is a potent negotiating strategy that enables real estate investors and business owners to negotiate from a position of strength to otherwise hostile lenders and financial institutions. A properly structured chapter 11 bankruptcy plan or pre-negotiation makes you the 800 pound gorilla in the room and forces your lenders to deal with you honestly because we successfully move the leverage to your side of the table.

For further information or assistance with restructuring your debts, contact Capital Restructure Group.
Phone # 877-572-2748 (877-57-CAPITAL)
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