Intercreditor and Co-Lender Agreements for Mortgage/Mezz and A/B Financing: Structuring and Enforcement

Description

Whether analyzing, negotiating, or drafting an intercreditor agreement, counsel for lenders and borrowers must understand the key provisions and their potential impact. Counsel must also incorporate the lessons from past defaults, workouts, and bankruptcies.

The critical question in most intercreditor agreements is each lender's ability to exercise essential rights and enforce or challenge the deal when a real estate loan defaults or a dispute between lenders arises. Loan workouts and bankruptcies complicate the enforcement and remedies available.

Lenders involved with tranched loans, including mezzanine loans and A/B structured loans, must be vigilant about protecting their rights and remedies under existing and future agreements. Borrowers need to understand how these agreements and tiered lending structures impact borrowers' ability to negotiate a workout, extension, or discounted payoff.

Listen as our panel of experienced practitioners outlines critical legal issues facing parties to tiered real estate financing transactions involving mezzanine intercreditor agreements and co-lender agreements. The panel will discuss the key terms in the contracts, the implications of real estate workouts and bankruptcies, the concerns of the borrower, and lender strategies for enforcement of remedies.