Tenant in Common Workouts

Outline

1. Introduction
   1. Impact of real estate slowdown on TICs
   2. Impact of the involvement of special servicers in TIC loan workouts
   3. Impact of troubled TIC sponsor situations
2. Overview of TIC structure
   1. Master lease structure
   2. Asset management structure
3. Types of TIC workouts
   1. Financially troubled sponsor
   2. Financially troubled property
   3. Poorly managed property
   4. Situations involving fraud
4. Key issues/complexities in TIC workouts
   1. Multi-party structure of TICs
   2. Lack of control over borrower/property owner
   3. Conflicts of interest in selecting counsel
   4. Replacing the existing TIC Sponsor
   5. Lender consent/non-recourse carve-out guarantees
5. Lender reaction to TIC workouts
   1. Expansion of recourse liability
   2. Change in structure
   3. Required capital calls
6. Collateral issues to be considered in a TIC workout
   1. Tax issues
   2. Securities issues

Benefits

The panel will review these and other key questions:

• How is the real estate slowdown impacting TIC deals?
• What are the unique complexities of TIC workouts?
• What collateral issues should be considered during a TIC workout?
• How can counsel representing parties to a TIC deal best advise their client during a workout of the deal?