KH Funding Company

Client Profile
KH Funding Company (“KH” or the “Company”) is a mortgage company based in Silver Spring, Maryland that primarily originates, acquires and services loans. The Company’s lending activities were primarily concentrated in Washington D.C. and the surrounding Maryland and Northern Virginia counties.
Situation
As cash flow deteriorated and KH was unable to service its debt obligations, the Company filed for a Chapter 11 bankruptcy proceeding in December 2010. As part of its Liquidation Plan confirmed by the U. S. Bankruptcy Court for the District of Maryland, the Plan Administrator determined that a sale of KH’s outstanding loan portfolio was the best option for maximizing return to its stakeholders.
Solution
SSG was retained in March 2014 as the Plan Administrator’s investment banker for the purpose of marketing KH’s loan portfolio for sale and soliciting offers. SSG conducted a comprehensive marketing process which resulted in a wide range of interest from potential investors. Aspen Capital’s offer was ultimately the highest and best price for the Company’s loan portfolio. SSG’s experience in running efficient and timely sales processes enabled key stakeholders to maximize the value of the assets.