Commercial Real Estate Loan Workouts

Strategies for Developers, Owners and Lenders to Negotiate an Effective Workout Agreement

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Tuesday, October 5, 2010

Recorded event now available

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Course Materials

This CLE course will provide counsel to owners, developers and lenders with an overview of the benefits and limitations of real estate loan workout agreements. The panel will outline best practices for negotiating workout agreements between owners, developers and lenders.

Description

Owners and developers of financially troubled real estate projects must keep properties afloat despite waning cash flows and weakening property values. At the same time, lenders facing late payments and pending borrower defaults are seeking ways to recover on real estate loans.

Workout agreements allow loans to be restructured to protect an owner’s interest in property and the lender’s investment. Counsel for both parties must strategically negotiate such agreements to ensure that their clients can pursue their original remedies in the event that the workout fails.

Federal guidelines on commercial real estate loan workouts, released by the Federal Financial Institutions Examination Council last year, offer some guidance for examiners and financial institutions on working with distressed borrowers.

Listen as our authoritative panel of real estate finance attorneys explains the benefits and limitations of commercial real estate loan workout agreements. The panel will provide their experiences, guidance and best practices for negotiating workout agreements for owners, developers and lenders.

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Outline

  1. Developing a strategy
    1. Immediate action steps
    2. Limits on the lender’s objectives
    3. The threat of bankruptcy
    4. Knowing the enforcement options
  2. Types of workouts
    1. Alternatives to foreclosure
    2. Forbearance agreements
    3. Bankruptcy mitigation techniques

Benefits

The panel will review these and other key questions:

  • What are the benefits of real estate workouts for lenders and borrowers?
  • When are loan workouts an optimal — or even viable — option for borrowers and lenders?
  • What are some best practices in negotiating a real estate workout agreement?
  • How can borrowers and lenders identify and minimize their legal risks when contemplating a real estate workout?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

David A. Barksdale
David A. Barksdale
Partner
Ballard Spahr

He focuses on distressed real estate, real estate development, finance and construction, and secured finance. He...  |  Read More

Ren R. Hayhurst
Ren R. Hayhurst
Partner
Bryan Cave

He represents lenders in real estate and commercial loan documentation, real estate loan workouts and foreclosure,...  |  Read More

Steven D. Collier
Steven D. Collier
Counsel
Alston & Bird

He concentrates in the area of mortgage finance, emphasizing the representation of institutional real estate lenders,...  |  Read More

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