Case Study:
R. Partnership
Partnership Dispute Leads to Voluntary Liquidation of RV Parks and Manufactured Home Communities in Multiple States
Family members of an industry leading owner/operator of RV parks and manufactured home communities across the country became involved in a partnership dispute regarding four properties located in three different states, including properties near Lake Tahoe, CA, Austin, TX and Gulf Shores, AL. The management deadlock and related litigation made it impossible for the companies to operate effectively.
The Solution
On the second day of trial on the merits of the litigation, the parties elected to appoint co-equal receivers (one selected by each party) to monetize the portfolio of properties and either distribute the resulting proceeds to the parties or deposit the proceeds with the Court pending further litigation, as necessary.
Greg Milligan and Karen Nicolaou of Harney Partners were appointed as the co-equal receivers (styled as “Wind Up Supervisors” in this matter).
During the first 90 days of the engagement, Milligan and Nicolaou negotiated an agreed monetization plan with the litigating siblings to allow for an orderly sale process.
The Results
This matter is still pending.
Milligan and Nicolaou have retained Jones Lange LaSalle (JLL) to market and sell three of the four properties in the portfolio, either as a package or any combination that achieves the highest net proceeds to the receivership estate.
The fourth property sells developed lots in a high-end RV community and all remaining lots will continue to be sold in the ordinary course of business.
Services & Roles
Fiduciary Services
State Court Receiver
Financial Advisory
Assessment
Liquidation/Wind Down
*Some engagements may have been performed by team prior to joining Harney Partners.
