Stinson Team Recognized with Transaction of the Year Award by MN Chapter of Turnaround Management Association

12.21.2022

The Minnesota Chapter of the Turnaround Management Association has honored Stinson attorneys Ed Caldie, Drew Glasnovich and Melinda Dugas, and a team of other professionals with its Transaction of the Year Award for working to preserve a vision of economic growth and driving commercial development in North Minneapolis. The transaction involved the former headquarters building for Thor Construction at the corner of Penn Avenue North and Plymouth Avenue North. The Stinson attorney team served as counsel to Alliance Management, as receiver for the building, and they, along with other attorneys and financial professionals, worked together to protect this economic vision.

Thor Construction undertook the construction of the building as the general contractor and hired subcontractors to perform substantial work. The project was financed through a series of transactions, with post-construction financing consisting of a $1.76 million first-position loan, plus a complex $11.45 million tax-credit finance program. The financing structure was an investment in the area, both in the short term and the long term, with the goal of creating sustained economic growth. The building was also part of a complex leasing and co-ownership arrangement, which included other minority-owned businesses tenants, an African-American heritage museum, community development agencies, and Target, who sublet to other businesses, including Summit Academy.

During construction, Thor Construction had not paid all of its subcontractors for their work on the project. The holding company stopped making mortgage payments, leaving more than $10 million in secured debt unpaid. The collapse of Thor Construction in 2019 put leases and numerous constituency groups at risk. Thor HQ (the building’s owner) was placed in receivership, and Alliance Management was appointed as receiver. In addition to marketing and selling the building, Alliance's goals included resolving lien validity and priority disputes, maintaining tax financing, and preserving the building's role as an economic cornerstone for the neighborhood.

The successful negotiation with Ground Floor LLC allowed Alliance to satisfy each of its goals. Under the ownership and leadership of Ground Floor, the building will serve its original purpose of driving commercial development in the neighborhood. With a stable landlord, tenants crucial to the local community can invest more in the building and lenders have a new financially-stable borrower who can preserve their tax credit financing deals. Additionally, mechanic's lien holders were paid fair settlements and their liens were released.

Caldie counsels Fortune 500 companies, secured and unsecured creditors’ committees, trustees, investment funds and others in complex bankruptcies, workouts and related disputes, particularly in the energy, oil and gas, retail and health care sectors. His keen understanding of complex financial structures helps him craft creative solutions for clients.

Dugas counsels individuals and businesses in protecting their rights and maximizing outcomes in a variety of commercial real estate transactions, including leasing, purchases and sales, joint ventures, and real estate development. While representing parties in complex real estate transactions, she provides practical and effective legal solutions tailored to her national and regional real estate clients’ needs.   

Glasnovich shepherds corporate clients in work outs with secured and unsecured creditors and through court-supervised wind-downs, liquidations, and restructuring proceedings. He also represents receivers, bankruptcy trustees, assignees, and similar fiduciaries in wind-downs, asset sales, claim objections, and adversary litigation.