Distressed Debt, Workouts and Restructurings

Our lawyers represent lenders, investors and borrowers in loan workouts and distressed debt transactions. In these challenging economic times, lenders rely on our team to restructure troubled loans through diversified means, including loan modifications, forbearance agreements and stipulations of settlement. When necessary, our lawyers seek expedited recovery of secured assets through foreclosure or deeds in lieu of foreclosure. Our investor clients turn to us for counsel in their acquisition of discounted distressed debt and subsequent asset recovery. Borrowers seek our guidance in restructuring their debt so they can retain their assets, or, when this is not possible, limit their loss and financial exposure.

Our team has broad transactional, real estate finance and bankruptcy experience. This provides our clients with a multidisciplinary approach to help identify problems and develop strategies to meet the client’s goals.

  • Represented an investment fund holding a pool of distressed loans. In arduous and time-sensitive negotiations, we were able to quickly settle and resolve contested foreclosure actions. This allowed the client to obtain expedited title to the properties and recoup its investment in a timely and cost-effective manner. The work required using “out of the box” strategies to defeat the borrower’s and guarantor’s attempts to impede our client’s recovery of the property.
  • Successfully represented an institutional lender in numerous settlement discussions, forbearance agreements and foreclosure actions to allow a package of troubled loans to be sold to an investor.
  • Represented the owner of distressed commercial real estate in upstate New York in a successful negotiation and closing of a Deed in Lieu Agreement, in which the borrower and the guarantors received releases and other favorable terms from the lender.

Overview

Our lawyers represent lenders, investors and borrowers in loan workouts and distressed debt transactions. In these challenging economic times, lenders rely on our team to restructure troubled loans through diversified means, including loan modifications, forbearance agreements and stipulations of settlement. When necessary, our lawyers seek expedited recovery of secured assets through foreclosure or deeds in lieu of foreclosure. Our investor clients turn to us for counsel in their acquisition of discounted distressed debt and subsequent asset recovery. Borrowers seek our guidance in restructuring their debt so they can retain their assets, or, when this is not possible, limit their loss and financial exposure.

Our team has broad transactional, real estate finance and bankruptcy experience. This provides our clients with a multidisciplinary approach to help identify problems and develop strategies to meet the client’s goals.

Representative Matters

  • Represented an investment fund holding a pool of distressed loans. In arduous and time-sensitive negotiations, we were able to quickly settle and resolve contested foreclosure actions. This allowed the client to obtain expedited title to the properties and recoup its investment in a timely and cost-effective manner. The work required using “out of the box” strategies to defeat the borrower’s and guarantor’s attempts to impede our client’s recovery of the property.
  • Successfully represented an institutional lender in numerous settlement discussions, forbearance agreements and foreclosure actions to allow a package of troubled loans to be sold to an investor.
  • Represented the owner of distressed commercial real estate in upstate New York in a successful negotiation and closing of a Deed in Lieu Agreement, in which the borrower and the guarantors received releases and other favorable terms from the lender.

Contacts