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

Receiverships for Distressed Commercial Real Estate: Process, Pros and Cons, Receivership Order Considerations

Lender, Servicer, and Distressed Buyer Considerations

$347.00

This course is $0 with these passes:

CLE
ALL
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Description

The current commercial real estate market conditions have resulted or likely will result in defaulted loans and distressed real estate and the need for court-appointed receiverships. Lenders and servicers appoint receivers to manage, market, and sell distressed assets during or instead of foreclosure. Receiverships offer several benefits to lenders and servicers, primarily by providing an opportunity to stabilize and maximize the value of the subject property in a relatively quick and cost-effective manner. But, there are several factors to consider.

The lender must be familiar with the process for appointing the receiver, determine who the receiver will be, and demonstrate to the court that the appointment of a receiver will benefit the management of the property and preserve value.

Many states do not have statutes that define what powers a court-appointed receiver may have, so the order should contain all the powers and responsibilities of the receiver. Key provisions include the ability to manage and control property, collect rents, and pay all expenses incurred with managing the property, as well as the power to hire the management company and the leasing agent. The receiver should also be indemnified for any actions taken in compliance with the order.

Listen as our authoritative panel explains the factors that counsel for lenders and servicers should consider when evaluating whether to seek or oppose a receivership for distressed commercial real estate. The panel will also explain strategies for navigating the receivership process.

Presented By

Richard P. Ormond
Shareholder; Co-Chair Fiduciaries, Receivers & Trustees Group
Buchalter

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.

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Mark A. Silverman
Partner
Troutman Pepper Locke LLP

Mr. Silverman represents national financial institutions, CMBS special servicers, fintech companies, and non-bank lenders in complex loan workouts, creditors' rights, loan enforcement, and bankruptcy matters. He helps clients recover what they are owed when borrowers and guarantors fail to meet their obligations. Mr. Silverman focuses on creditors’ rights, loan workouts and enforcement, and bankruptcy, representing clients working out loans across various asset classes, including office, multifamily, retail, hospitality, health care, and industrial. His bankruptcy work includes representing secured and unsecured creditors in preference claims. Mr. Silverman’s diverse practice includes helping clients resolve contract disputes, post-judgment collections, fraudulent transfer claims, complex business divorce issues, and other commercial litigation. He frequently speaks, writes, and comments on the CMBS industry and loan enforcement topics.

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Mark Silverman
Lock Lorde, LLP
Matthew S. Tarshis
Principal
Frontline Real Estate Partners, LLC

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.

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Credit Information

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


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, December 10, 2024

  • schedule

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

  1. Receivership overview
    1. Receivership defined
    2. Types of receiverships
    3. Appointment of the receiver and the receivership order
    4. The receivership process and reporting requirements
    5. Factors to consider when evaluating whether to seek or oppose a receivership
  2. Common legal and business considerations with receiverships
    1. Receivership fiduciary obligations and liabilities
    2. Shelter from lender liability
    3. Borrower bankruptcy issues
    4. Risks to the prospective buyer: no representations or warranties on the property, dealing with a defaulting borrower, title issues, etc.
    5. State court versus federal court: pros and cons
    6. 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?