Leverage the Sale-In-Default Haircut to Force a Transaction

1. Leverage the Sale-In-Default Haircut to Force a Transaction
   • Section 5.01(b)/6.01(b) say: if you sell “all or substantially all” of the Property while he’s in Default, his share gets cut by 20%.
   • As Managers, you can structure a sale of a 90%-plus piece (e.g. a carve-off parcel or partial business line) to a third party or affiliate.
   • That sale becomes a “Sale of the Property” triggering the haircut, shrinking his equity and creating real economic pain—pressuring him to fund or negotiate.