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  • videocam On-Demand
  • card_travel Real Property - Finance
  • schedule 90 minutes

Commercial Mortgage Workout Strategies: Forbearance, Foreclosure, and Bankruptcy

Special Servicing Concerns With CMBS/CLO, Protecting Lender and Borrower Interests

$347.00

This course is $0 with these passes:

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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 the contract to ensure that their clients can pursue their original remedies if 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 resulting in lender liability challenges by borrowers.

As the borrower's bankruptcy may then follow workout agreements, counsel must also be mindful of the bankruptcy implications when drafting forbearance agreements. Understanding the automatic stay is critical, and stipulations supporting relief in bankruptcy must be carefully considered.

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

Presented By

Allen J. Dickey
Miscellaneous

Mr. Dickey practices in all aspects of real estate finance, securitization, acquisition, leasing and development. He also has experience in equity financing, mortgage backed securitization, mortgage, and mezzanine and subordinate loan origination. He has published several articles regarding real estate, structured finance, commercial lending, and loan enforcement, and often lectures to attorney and industry groups regarding real estate, lending and loan enforcement topics. Mr. Dickey’s experience includes working with lenders, developers, investors and business owners on all aspects of real estate transactions, including mortgage and mezzanine loan origination and enforcement, CMBS lending, mortgage backed securitization, construction finance, development finance and loan workouts, modifications and extensions.

Frank F. Velocci
Partner
Faegre Drinker Biddle & Reath LLP

Mr. Velocci resolves disputes for clients through litigation and arbitration in real estate, telecommunications, health care, prerogative writ, legal malpractice and business tort matters. He also represents debtors, trustees, committees and secured creditors in Chapter 11 bankruptcy proceedings. Mr. Velocci counsels community hospitals and health systems in complex M&A transactions, including providing advice under the Community Health Care Assets Protection Act (CHAPA), which governs the sale of nonprofit hospitals. He has extensive experience with New Jersey health care mergers and acquisitions and also represents nonprofit organizations and community foundations.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, May 18, 2021

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Alternatives to foreclosure
  2. Forbearance agreements
  3. CMBS/CLO loans and special servicers
  4. Bankruptcy risks and issues

The panel will review these and other key issues:

  • When are loan workouts an optimal--or even viable--option for borrowers and lenders?
  • What are the critical provisions to include 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 intricate rules that special servicers face when resolving defaulted CMBS loans?