Rapid Successor Agent Appointment – Smooth Wind-Down of Complex Hospitality Loan

Summary

When a global law firm reached out to Kroll regarding its representation of a second lien ad hoc group of lenders on loan facility, it became clear that a successor agent was required. The existing administrative and collateral agent had sold off its loan position and subsequently resigned as agent, and the deal was set to be extinguished by selling off all the loans within just a few weeks. Kroll was able to quickly step in as the successor agent and bridge the gap until the liquidation was completed, underscoring its unique capability to support both restructuring administration and agency and trustee services.

 

The Challenge

Kroll was appointed as successor agent under significant time constraints. The primary challenge involved seamlessly replacing the previous acting agent and assuming full responsibility for every aspect of the transaction and onboarding all related documentation and parties. Kroll was able to accomplish this within a few days and successfully facilitated the timely closure of the transaction, resulting in completion of the loan sale within two weeks.

 

Kroll’s Solution

Kroll approached this engagement with a practical and cost-effective solution tailored to the client's immediate needs. Recognizing the short-term nature of the appointment, Kroll offered competitive pricing, expedited the onboarding process and provided a streamlined resignation and successor agreement. This proactive approach not only ensured a swift and seamless transition but also minimized expenses and administrative burdens for the client, enabling the process to move forward efficiently and without disruption.

 

The Impact

Kroll’s Agency and Trustee Services practice was able to step in quickly and offer an end-to-end successful experience which helped extend our client relationship to additional areas of Kroll. These efforts saved costs and helped to expedite the process, offering a smooth and timely transition.