LAS VEGAS, Dec. 13, 2006 - USA Commercial Mortgage Company ("USACM"), Mesirow Financial and Compass Partners LLC ("Compass") today announced that Compass made the "highest and best" bid for certain assets of USACM including the rights to service its loans and the sale of substantially all of the USA Capital First Trust Deed Fund, LLC. ("Fund"), at an auction conducted on December 7th in U.S. Bankruptcy Court in Las Vegas.

 

Compass, a New York City-based private lender, submitted a bid of $67.0 million which included unspecified amounts for USACM's loan servicing rights and the assets of the Fund, plus a $1.5 million break-up fee payable to SPCP Group, LLC, the "stalking horse bidder."  Compass' winning bid is subject to confirmation of the Joint Reorganization Plan of USACM at a hearing on December 19th.

 

"Their offer was not merely the 'highest and the best' as far as the courts are concerned, but as far as their intentions are concerned too," Bill Bullard, Direct Lender Committee chairman, said. "A distinguishing factor for us was that Compass made it clear they wanted to go forward with the business of USA Capital and keep the ongoing relationships with the lenders and investors.  This deal preserves hope for the lenders and investors," Bullard continued.

 

David Blatt, co-founder and managing partner of Compass Partners LLC said, "We have been preparing for months so that Compass can provide the highest quality loan servicing experience for USACM's investors and borrowers."  He added, "This is an exciting opportunity for us to rebuild and grow using USA Capital's operations, and regain the confidence of the investors and the borrowers." 

 

"We are very pleased with the winning bid of Compass and believe that not only have we secured the highest value possible for the assets in the auction, but we also have the best firm to take over the servicing of our lenders and borrowers," said Thomas J. Allison, president and chief restructuring officer for USACM, and executive vice president and senior managing director of Mesirow Financial Consulting.

 

Mesirow Financial Interim Management, LLC was retained by the USACM board of directors in April 2006 to restructure and reorganize USACM and certain of its affiliates.  Allison was named president shortly thereafter, replacing former president Joseph D. Milanowski.

 

USA Commercial Mortgage Company and certain of its affiliates filed on April 13, 2006 voluntary petitions for reorganization under Chapter 11 with the U.S. Bankruptcy Court for the Southern District of Nevada. The company also does business under the name USA Capital. Filings for Chapter 11 were made for USA Commercial Mortgage Company; USA Capital Realty Advisors, LLC; USA Securities, LLC; USA Capital First Trust Deed Fund, LLC; and, USA Capital Diversified Trust Deed Fund, LLC.

 

USA Commercial Mortgage Company
USA Commercial Mortgage Company, a privately-held company, is a private lender providing short-term and permanent financing to homebuilders, commercial developers, apartment owners and institutions nationwide. The company is licensed by the State of Nevada Mortgage Lending Division (NV MBR #333) and has its headquarters at 4484 South Pecos Road, Las Vegas, Nevada, 89121.

 

Mesirow Financial Consulting
A full-service financial advisory services provider, New York-based Mesirow Financial Consulting provides corporate recovery, litigation and investigative services, interim management, valuation services, and other consulting services.  Interim management services are offered through Mesirow Financial Interim Management, LLC.  For more information about Mesirow Financial Consulting, please visit http://www.mesirowfinancial.com/consulting.

 

Mesirow Financial
The parent company of Mesirow Financial Consulting, Mesirow Financial, is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an independent employee-owned firm with more than $20 billion in assets under management and more than 1,100 employees in locations across the country and in Puerto Rico. With expertise in Investment Management, Investment Services, Insurance Services, Investment Banking, Consulting and Real Estate, Mesirow Financial has consistently met the financial needs of investing institutions, public sector entities, corporations and individuals. For the fiscal year ended March 31, 2006, the firm posted revenues of $364 million and had $180 million in capital. For more information about Mesirow Financial, visit its Web site at www.mesirowfinancial.com.

 

Compass Partners LLC
Compass Partners LLC is a New York-based private equity firm that acquires distressed commercial mortgages throughout the country. The firm services these non and subperforming loans for its own account, as well as for third parties.  For more information, please visit www.compass-partners.net.

MEDIA CONTACTS:

 

Mark L. Olson
USA Commercial Mortgage Company
702.734.2400, option 3
702.353.6540 cell
molson@usacapitalcorp.com

 

Juda S. Engelmayer, 5W Public Relations
For Compass Partners LLC
212-584-4287 direct
917-733-3561 cell
jengelmayer@5wpr.com

 

Julie Liedtke, Marketing Manager
Mesirow Financial
312-595-7902
312-595-6970 fax
jliedtke@mesirowfinancial.com