Wednesday, April 22, 2009

My business hero

Just outside of Park City there is a very large subdivision called Promontory. About a year ago, the developer was suffering from the housing market downturn. He went to Credit Suisse and tried to renegotiate his $275M loan. They weren't interested.

So, he declares bankruptcy. Credit Suisse can't find another owner so the bankruptcy court holds an auction. There is only one bidder, the original developer. He buys the whole thing back for $75M.

Builder: shrewd
Credit Suisee: "What the hell just happened?"
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