Picerne Capital acquired, from a Japanese bank, a note that was secured by a mortgage on a 284 room ski hotel located in the French Alps. The obligor on the Note was a bankrupt Japanese construction company which was in active liquidation.
Picerne Capital discovered the underlying French subsidiary of the Japanese parent had significant tax losses and other tax attributes that were of great value to a new owner of the property, but had no value to the bankrupt parent corporation. Picerne Capital arranged a debt/equity swap with the debtor, acquiring 100 percent of the stock of the French subsidiary in return for waiving any deficiency claims in the Japanese bankruptcy. As the new owner of the hotel, Picerne Capital successfully renegotiated the master lease with greatly improved terms and conditions, and subsequently sold the property to a local French investor.
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