Commercial Real Estate Portfolio and CMBS Loan Workouts: Forbearance, Foreclosure and Bankruptcy

Protecting Lender and Borrower Interests When Dealing With Distressed Loans

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


Conducted on Thursday, May 28, 2015

Recorded event now available

or call 1-800-926-7926
Program Materials

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 unique issues and considerations for restructuring CMBS 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 such agreements to ensure that their clients can pursue their original remedies in the event that 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 workout agreements may then be followed by the borrower’s bankruptcy, counsel must also be mindful of the bankruptcy implications when drafting forbearance agreements. Understanding the automatic stay is critical and stipulations supporting relief in a bankruptcy must be carefully considered.

Counsel should prepare special servicers to clearly 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, anticipate and manage risks associated with borrower bankruptcy. The panel will also discuss unique issues and considerations for special servicers of CMBS loans.

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Outline

  1. Alternatives to foreclosure
  2. Forbearance agreements
  3. CMBS 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 critical provisions must be contained 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 complex rules that special servicers face when resolving defaulted CMBS loans?

Faculty

Hayhurst, Ren
Ren R. Hayhurst

Partner
Bryan Cave

Mr. Hayhurst's practice focuses on all aspects of lender representation, including real estate and commercial...  |  Read More

Jeffrey S. Pitcher
Jeffrey S. Pitcher

Partner
Ballard Spahr

Mr. Pitcher focuses on distressed real estate and real estate development, finance, and leasing. He represents clients...  |  Read More

Matthew G. Summers
Matthew G. Summers

Partner
Ballard Spahr

Mr. Summers represents creditor committees, debtors, equipment lessors, landlords, indenture trustees,...  |  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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