Situation:

Our client was in severe financial distress. It had six years remaining on a lease, but required only three years for an operation it was closing down.

Approach

ProTen recommended contacting the building to try to reduce the remaining lease obligation, and our client gave approval. ProTen started negotiations with the building by pointing out that our client did not need the facility long term and that our client was evaluating its options as it related to a potential bankruptcy. ProTen stressed additionally that the asset manager of the building had our client as a significant client in its portfolio also.

Result

As the end result, the building agreed to reduce the lease term by three years at no cost to our client, ultimately removing 50% of the remaining rent obligation.

Case Studies : 1 . 2 . 3 . 4 . 5 . 6 . 7 .