Commercial Real Estate Loan Workouts and Modifications: Forbearance, Foreclosure, and Bankruptcy

Special Servicing Concerns With CMBS/CLO Loans, Protecting Lender and Borrower Interests

A live 90-minute premium CLE webinar with interactive Q&A


Wednesday, March 11, 2020

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, February 14, 2020

or call 1-800-926-7926

This CLE webinar will provide lenders' and borrowers' counsel with an overview of the benefits and limitations of real estate loan workout agreements and alternatives to foreclosure. The panel will explain best practices for negotiating forbearance agreements and minimizing risks associated with borrower bankruptcy. The program will also discuss servicing issues and other concerns in restructuring CMBS and other securitized loans.

Description

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 the contract to ensure that their clients can pursue their original remedies if the workout fails.

Well-structured forbearance agreements or waivers are essential to protecting a lender's position. Counsel representing lenders must anticipate and successfully navigate obstacles during the negotiation process and avoid pitfalls that can result in lender liability challenges by borrowers.

As the borrower's bankruptcy may then follow workout agreements, counsel must also be mindful of the bankruptcy implications when drafting forbearance agreements. Understanding the automatic stay is critical, and stipulations supporting relief in bankruptcy must be carefully considered.

Counsel should prepare special servicers to understand the specific challenges they face in their duties. Special servicers must cope with their responsibilities under pooling and servicing agreements and other rules that can challenge their goal of maximizing recovery. Counsel should also prepare borrowers for the limitations to which special servicers are subject and the range of options available to special servicers so that the parties have the best opportunity to explore realistic outcomes for a workout or resolution of distressed real estate collateral assets.

Listen as our authoritative panel of attorneys discusses best practices for crafting loan workout agreements that protect the parties' interests, minimize liability for lenders, and anticipate and manage risks associated with borrower bankruptcy. The panel will also discuss unique issues and considerations for special servicers of securitized loans.

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Outline

  1. Alternatives to foreclosure
  2. Forbearance agreements
  3. CMBS/CLO loans and special servicers
  4. Bankruptcy risks and issues

Benefits

The panel will review these and other key issues:

  • When are loan workouts an optimal--or even viable--option for borrowers and lenders?
  • What are the critical provisions to include in the forbearance or waiver agreement?
  • What unique risks does the borrower's bankruptcy pose, and how can counsel minimize these risks in crafting loan workouts?
  • What are the specific and intricate rules that special servicers face when resolving defaulted CMBS loans?

Faculty

Dickey, Allen
Allen J. Dickey

Partner
Drinker Biddle & Reath

Mr. Dickey is a real estate and finance attorney who advises real estate funds, opportunity funds, real estate...  |  Read More

Slusher, Vince
Vince Slusher

Partner
Drinker Biddle & Reath

Mr. Slusher is a dedicated advocate for companies facing financial or regulatory crises, who expends the effort to...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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48 hours after event

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DVD

10 business days after event

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