An asset no lender could realistically enforce against.

The situation

A private higher-education institution was in default with its lenders. The institution was operating and enrolled, but its debt had been sized against a construction timeline it had not met, with repayments falling due before the fee cycle generated the cash to meet them.

The complexity

The asset could not be enforced in any practical sense. A campus with enrolled students has limited alternative use, and the lenders' recovery in an enforcement scenario was materially worse than in a restructuring, but no lender wanted to be first to say so.

The structure

The debt was reorganised around the institution's actual fee-collection cycle, with repayments dated to follow admission cycles rather than calendar quarters, secured on campus assets and escrowed fee receipts.

The outcome

The institution returned to serviceable debt and continued operating without interruption to enrolment.

Described generically. Client identity, counterparty and transaction terms are confidential.