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DISTRESSED DEBT & REAL ESTATE WORKOUTS

Collaborative and effective strategies to protect your rights and collateral. Pinpoint focus on maximization of the recovery of assets.

Our approach

Debt landscape changed dramatically over the last five years with a substantial number of defaults, workouts, maturities and restructuring necessitated by economic volatility and lack of liquidity in the commercial real estate market. This condition has moderated only modestly and lenders cannot afford to adjust to and incorporate strategies to minimize exposure.

We provide lenders, servicers and other financial institutions effective strategies from the lessons learned to protect their rights and maximize the recovery of their assets. In 2012, we handled no less than $1.25 billion in restructurings and workouts.

Workouts and restructurings

Our team represents clients in workouts and restructurings across the full spectrum of asset classes. We advise on every aspect of loan restructurings, work-outs and assist in structuring all segments of the leveraged finance capital structure.

We also specialize in providing legal advice in connection with master servicing and special servicing.

Securitization

With strong capital markets experience, we help our clients navigate securitizations. Our attorneys perform analysis of Pooling and Servicing Agreements for securitized transactions and identifying the rights of the various creditors and participants.

Bankruptcy

We advise clients on complicated bankruptcy proceedings and bankruptcy-related financings, including significant debtor-in-possession and exit financings. We also help negotiate reorganization plans and identify and resolve inter-creditor issues.

Dispositions

We represent and advise purchasers and sellers in all types of capital markets’ debt, including the purchase and sale of secured or REO property, existing commercial permanent and construction loans. These transactions are in appropriate structures including as single assets, in pools or in securitized transactions.

We also manage bulk mortgage assignments and develop and implement compliance programs.

Litigation

We are an industry leader in distressed commercial debt litigation, including aspects such as judicial foreclosure, springing recourse guaranty, receivership and lender liability matters. We have broad experience in seeking federal receivers on behalf of secured creditors throughout the country. Of note, we successfully obtained New England’s first federal receivership for defaulted CMBS debt.

Who we work with

  • Our team regularly represents financial institutions, mortgage bankers, insurance companies, federal agencies, master and special servicers in connection with workouts, restructurings, foreclosures, participations and sales of whole loans.
  • We also have worked with clients in the purchase and sale of loan pools, both with and without servicing.
  • We have also represented trustees, primary servicers, master servicers and special servicers in connection with the substitution of assets, rating agency criteria, guidelines and approval process for secondary market matters.

Recent experience

  • Representing a loan servicing arm of one of the largest diversified financial services institutions in the United States, in workouts, notes sales, foreclosures, and state, federal and multi-jurisdictional receiverships for more than 60 commercial properties with notes ranging in value from $500,000 to $84 million. The collateral securing these loans included commercial properties and hotels, located in Illinois, Wisconsin, Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New Jersey, Maryland, Pennsylvania, and Virginia.
  • Representing an Illinois bank and its loan servicer by defending against allegations of preferential and unauthorized transfers from debtor in a case Representing a Dallas-based portfolio management company in the receivership, REO transactional work and guaranty claims, against the principal owners of a $28 million property in Rhode Island. Additionally, representing them in prosecuting a federal receivership and guaranty action regarding a $5 million industrial/commercial property in Massachusetts.
  • Successfully sought appointment of state court receiver for the largest mixed-use office, commercial and industrial complex in Rhode Island, and currently prosecuting recourse carve-out and waste claims totaling $16.8 million against borrower principals related to defaults of loan in Rhode Island Federal District Court.
  • Representing a Philadelphia-based real estate finance company, in numerous trust preferred securities transactions across the country ranging from $25 million to $200 million to public and private companies, home builders, REITS and other borrowers and the subsequent restructuring of several transactions.
  • Nationwide coordinating counsel for banking association in its trustee capacity, for all residential mortgage backed securities litigation, including wrongful foreclosure, deceptive trade practices, condemnation, and subprime mortgage litigation.
  • For a federal agency, we managed and negotiated the liquidation of loans in transactions involving single family, multifamily and commercial mortgage pools with the principal amount outstanding in excess of $10 billion.

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Distressed Debt & Real Estate Workouts