Receiverships for Distressed Commercial Real Estate: Lender, Servicer, and Potential Buyer Concerns
Process and Key Provisions in Order Appointing a Receiver, Pros and Cons of Receiverships
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will guide counsel for lenders and loan servicers on seeking or opposing the appointment of receivership for distressed commercial real estate. The panel will also explain how lenders, servicers, and prospective buyers can navigate the receivership process.
- Receivership overview
- Receivership defined
- Types of receiverships
- Appointment of the receiver and the receivership order
- The receivership process and reporting requirements
- Factors to consider when evaluating whether to seek or oppose a receivership
- Common legal and business considerations with receiverships
- Receivership fiduciary obligations and liabilities
- Shelter from lender liability
- Borrower bankruptcy issues
- Risks to the prospective buyer: no representations or warranties on the property, dealing with a defaulting borrower, title issues, etc.
- State court versus federal court: pros and cons
- Managing costs of receiverships
The panel will review these and other notable questions:
- What factors must be considered by lenders and servicers when evaluating whether to seek or oppose a receivership?
- What are the critical provisions for any receivership order?
- What are the benefits and risks to prospective buyers in purchasing a property through a receivership?
Richard P. Ormond
Shareholder; Co-Chair Fiduciaries, Receivers & Trustees Group
Mr. Ormond has over 23 years of experience that includes finance, special servicing, loan syndication and... | Read More
Mr. Ormond has over 23 years of experience that includes finance, special servicing, loan syndication and participation, real estate, lending and banking, receivership, cannabis regulations, commercial litigation, and restructuring. He has tried numerous cases in state court, federal court and bankruptcy court and has arbitrated dozens of matters. Mr. Ormond is one of the nation’s leading experts concerning banking and finance; loan servicing; receivership law; and cannabis regulations. He is the former President of the California Receivers Forum, and he is the former Chair of the Remedies Division of the Los Angeles County Bar Association. Mr. Ormond also teaches Cannabis Business and Finance Law at Loyola Law School and Continuing Legal Education courses on dispute resolution, debt enforcement, secured transactions, cannabis law and receiverships.Close
Mark A. Silverman
Most of Mr. Silverman’s clients have one thing in common—they want to get paid what they're owed. When... | Read More
Most of Mr. Silverman’s clients have one thing in common—they want to get paid what they're owed. When borrowers and guarantors fail to meet their obligations, financial institutions, commercial mortgage-backed securities (CMBS) special servicers and other companies look to Mr. Silverman to enforce those commitments, in or out of the courtroom. Mr. Silverman frames and resolves issues involving creditors’ rights, loan workouts, bankruptcy and loan enforcement. He advises large, midsized and small banks; financial institutions; and financial technology companies across the country, as well as the nation’s largest CMBS special servicers. He also serves as Locke Lord’s CMBS Special Servicer Team Leader. Mr. Silverman’s loan enforcement and workout experience spans many sectors, including retail shopping centers and strip malls, hospitality and hotels, commercial and multi-family real estate, healthcare and medical facilities, industrial, manufacturing, transportation, along with more esoteric assets such as taxicab medallions and golf courses.Close
Matthew S. Tarshis
Frontline Real Estate Partners
Mr. Tarshis is responsible for leasing the company’s owned portfolio consisting of retail properties. In addition... | Read More
Mr. Tarshis is responsible for leasing the company’s owned portfolio consisting of retail properties. In addition to supporting the Frontline team with acquisitions and dispositions, he also represents both landlords and tenants and is involved with lease negotiations, sales, purchasing, market research, and site selection. Prior to joining Frontline, Mr. Tarshis was a member of RKF where he supported the firm’s Chicago brokerage team on both landlord and tenant representation activities. He also was responsible for updating RKF’s listings database and searched and explored for new retail opportunities.Close