Arcturus Group, a real estate advisory and asset management firm, completed its assignment to advise Canyon Value Realization Fund LP and Trilogy Portfolio Co., B-note holders in the Atlantis Resort in the Bahamas, on strategy, valuation and debt structure in connection with the litigation and restructuring of $2.6 billion in debt on the asset.
Hedge funds Canyon Capital and Trilogy Capital held approximately $120 million in B-notes secured by the Atlantis. The hedge funds launched a legal challenge to a restructuring proposal made by Brookfield, another Atlantis stakeholder. In January, the judge in the case issued a temporary restraining order blocking the exchange, leading to Brookfield terminating its proposed deal and agreeing to a settlement.
Among its services, Arcturus led negotiations, provided analysis of government documents and reviewed the valuation of Atlantis prepared in order to support its clients’ position. The resulting settlement provides resolution for all stakeholders and ensures continued viability of the Atlantis Resort.
“This settlement represents a great accomplishment in terms of crafting an outcome that allows every stakeholder to achieve its goals, despite very differing interests,” said Arcturus Co-Founder Jonathan Mayblum in a statement. “We navigated a complex deal structure, and aligned note owners of different stature to attain a successful result.”
Mayblum and Arcturus executive managing director Peter Ginsberg worked with law firm Brown Rudnick LLP on the case.