Business and Loan Workouts
Our Practice
Pedersen's lawyers handling business and loan workout matters deliver results by developing and implementing creative, on-target and cost-effective workout solutions for clients confronting distressed business and delinquent financial transactions.
We regularly represent a highly diverse group of clients from a cross-section of industries facing the complex challenges of workout and restructuring transactions. Together with our clients, we explore workable alternatives to costly and difficult bankruptcy proceedings.
After identifying and assessing each of our client's needs, we formulate customized workout solutions that are at once innovative and pragmatic. Our primary goal is to provide seamless, responsive representation while helping our clients minimize their risk and identifying areas of opportunity.
Our lawyers are experienced in a comprehensive array of workout and restructuring services, including cash flow mortgages, commercial mortgaged-backed security (CMBS) securitization portfolio defaults, mortgage loan workouts, mezzanine loan restructurings, deed in lieu of foreclosure transactions, enforcement proceedings, tax-exempt bond restructurings, and non-performing mortgage loan portfolio divestitures.
There are occasions when workouts are neither practical nor viable. When consensual settlements are not possible, we guide clients through court-appointed receiverships, foreclosures, and bankruptcy proceedings.
Our Experience
- Represented the owner of multiple commercial properties in the workout of multiple loans with multiple lenders.
- Represented bondholders, including bond funds and other institutional holders, on tax, regulatory, securities, and real estate law issues relating to the workout of a financially troubled nursing home facility in Illinois that was the subject of a complex tax-exempt bond financing.
- Advised a private equity investor in the acquisition of a distressed property through a cash payment and capital contribution for equity ownership interests in the company. As a condition of the purchase, negotiated with senior company lenders to modify material covenants of the company's financing agreements.
- Represented a high-end recreation wear retailer in a capital restructuring that resulted in the creation of four classes of preferred stock and that included negotiated concessions.
- Represented a credit enhancer in developing and implementing a short-term $39 million taxable bond structure for issuance by the Nevada Housing Division to refinance a troubled apartment project in Sparks, Nevada and avoid a $10 million loss.
- Represented a financial institution in working out and restructuring approximately $600 million of aggregate debt involving 50 real estate projects located throughout the United States.
- Represented a Chicago area bank in a deed in lieu of foreclosure transaction involving multiple apartment complexes and raw land that satisfied a $70 million first mortgage loan.
- Structured forbearance and workout arrangements on behalf of a mezzanine lender that obtained additional collateral, allowed new equity participation, and renegotiated an intercreditor agreement.
- Obtained an injunction on behalf of a senior lender against a mezzanine lender that prohibited interference with a developer's sale of condominium units in order to force payment on junior mezzanine debt.