Executive Summary
CMBG coordinated a public Article 9 sale for a private lender after a logistics borrower defaulted. The assets were marketed nationally, sold for 40% above appraised value, and generated a 95% recovery on the outstanding loan balance.
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Situation
A private lender had repossessed collateral from a defaulted borrower operating in the logistics industry and needed a recovery path that could be executed quickly without drifting into expensive litigation.
The practical challenge was not just taking possession of the assets. It was running a sale process that would be commercially reasonable, compliant under Article 9, and robust enough to maximize value rather than simply dispose of the collateral at a discount.
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Key Facts
The sale outcome turned on disciplined process design, broad buyer outreach, and a collateral strategy that treated the assets as marketable equipment rather than distressed leftovers.
Borrower Industry
Logistics
Process
Public Article 9 sale
Marketing Scope
National
Sale Price
40% above appraised value
Loan Recovery
95%
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Why Article 9 Was the Right Remedy
The lender did not need a full court-supervised insolvency process to enforce its rights. What it needed was a defensible foreclosure remedy that allowed it to liquidate the collateral efficiently while preserving competitive tension in the sale.
A public Article 9 sale offered that structure. It allowed the lender to move without the cost profile of litigation or bankruptcy while still creating a transparent process around notice, marketing, and sale execution.
- Used a secured-creditor remedy that could move faster than a court process.
- Created a public sale framework rather than a private disposal with limited market exposure.
- Positioned the collateral for stronger recovery through broader buyer competition.
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The Process
CMBG coordinated the Article 9 sale from notice through closing. The work included the procedural requirements that make the sale defensible, but just as importantly, the commercial work needed to create real buyer interest.
- Prepared compliant sale notices and coordinated process timing.
- Marketed the repossessed assets nationally to reach a wider buyer pool.
- Managed buyer diligence, information flow, and sale logistics.
- Coordinated closing mechanics so the process could move from repossession to recovery without unnecessary friction.
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Result
The sale closed at a price that exceeded appraised value by 40%, materially improving the economic outcome for the lender relative to a narrower or less disciplined process.
The lender recovered 95% of the outstanding loan balance and avoided the cost and delay of litigation, producing a faster and cleaner enforcement outcome.
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Key Takeaways
- A secured creditor remedy can still produce strong value when the process is marketed broadly and run with discipline.
- Appraisal value is not the ceiling when collateral is exposed to the right buyer pool.
- Article 9 remedies work best when legal compliance and sale execution are treated as one integrated process.
- Avoiding litigation is valuable only if the out-of-court process is still transparent, defensible, and recovery-focused.