Gordian Group offers financial analysis bolstered by the sharp negotiation skills needed to secure advantageous results.
Our professionals are experienced at analyzing risk and estimating losses on securitizations of various assets, including mortgages and loans. We provide valuation, negotiation, strategy and risk analysis to help our clients mitigate losses related to securitizations.
Gordian Group has been active in restructuring activities, representing regulators to Ambac and other monoline insurers that have significant exposure to the securitization area. We also represent clients in order to value, restructure, renegotiate and litigate with respect to significant residential and commercial mortgage portfolios.
Gordian Group has real-world experience recovering value in cases where a company’s securitizations have been adversely affected by bankruptcy. We represented MBIA in the Alamo/National and Spiegel bankruptcies, in which MBIA recovered 100% of its claims on credit card guarantee programs (plus fees in certain cases). We represented Abbey National Bank in recovering 100% of its receivables securitization investment – even after the bankruptcy judge made the bank an involuntary DIP lender in LTV’s bankruptcy.
Executive Point of View
Over the last decade, Wall Street issued trillions of dollars of securitizations involving mortgages and other financial instruments. Some operated as anticipated, even though the associated company went into bankruptcy. Many of these transactions involved a willing suspension of disbelief in terms of the assumptions underlying the issuance. Other transactions went further into sheer fraud. Gordian Group has been at the forefront of fixing many of the problems arising from the wave of securitizations. We represented investor plaintiffs against Bank of America, which sold $1 billion of installment sale receivable securitizations for Heilig-Meyers. In this highly contentious litigation, Gordian was able to demonstrate to a jury that there were specific reasons why the investors lost money — Heilig-Meyers deliberately underreported credit defaults in order to sweep $10 million in cash every month for its own account. And, we were able to show that Bank of America had to know it. Our clients received 100% of their monies owed — $140 million.