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Bankruptcy court okays acquisition of troubled real estate auctioneer.

Racebrook Marketing Concepts, LLC will acquire the assets of Sheldon Good & Company, the nation's leading real estate auction firm, pursuant to a sale approved last week by the United States Bankruptcy Court in the Southern District of New York.

The new corporate structure will take effect on August 1, 2009, with the firm's headquarters to be relocated from Chicago to New York City.

John J. Cuticelli, Jr., a former Sheldon Good & Company executive who established its New York office in 1989 and ran it until 1991, will assume the position of CEO. Oversight of the company's operations will be assumed by the Racebrook management team.

Cuticelli's company, Cuticelli Capital, provided debtor in possession financing and was the "Stalking Horse Bidder" after Sheldon Good & Company declared Chapter 11 bankruptcy in April.

Racebrook Marketing Concepts, a Racebrook portfolio company, is a wholly-owned subsidiary of Cuticelli Capital.

Cuticelli indicated that he is looking forward to realizing significant synergies created by adding Sheldon Good & Company's capabilities to the Racebrook team and anticipates that emerging real estate market conditions will provide substantial growth opportunities in the upcoming years.

He commented, "Sheldon Good & Company is a real estate industry pioneer and has a great brand name. I am looking forward to working with the staff of Sheldon Good & Company to build on past successes and create a bright future by introducing the institutional quality management practices the company deserves."

Racebrook Capital, a private equity firm, was originally founded by Cuticelli in 2004 as a portfolio company of Warburg Pincus to capitalize on increasing prospects of disintermediation in distressed debt and real estate capital markets.

Through its affiliated companies, Racebrook invests directly in troubled real estate ventures and also provides a range of services to other investors active in distressed real estate and capital markets.

Cuticelli has expanded the firm's core disciplines into the asset backed securities arena, as an anchor investor in TALF bonds, and has become a provider of Debtor in Possession financing to real estate related entities in bankruptcy.
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Title Annotation:FINANCE
Comment:Bankruptcy court okays acquisition of troubled real estate auctioneer.(FINANCE)
Publication:Real Estate Weekly
Date:Jul 29, 2009
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