Restructuring and Loan Workouts

Glaser Weil’s Restructuring and Loan Workouts team represents and works with borrowers, guarantors, developers, investors, and lenders to provide comprehensive representation in all aspects of loan workouts, extensions, modifications, forbearances, refinancings, deed-in-lieu transactions, foreclosures, recapitalizations and reorganizations. 

Our multi-disciplinary team of real estate, financial services, litigation, corporate, and tax lawyers have extensive experience advising clients in connection with substantial and complex matters involving the acquisition, disposition. restructuring, and workout of financially troubled projects. Our breadth and depth of knowledge in this area enables us to optimize the economic consequences associated with distressed real estate.

As one of the leading real estate practices in California, the firm represents borrowers, guarantors, lenders and investors, including banks, non-bank lenders, commercial real estate owners, commercial management companies, and developers in the full range of commercial real estate transactions and disputes. We have a track record of success in helping clients navigate the complexities of such transactions and disputes during uncertain conditions. We also assist with workouts, debt and equity restructuring, operational and liquidity issues, receiverships, and assignments for distressed properties. Our representative matters range from negotiating numerous loan modifications and forbearance agreements to assisting opportunistic clients to strike deals in the distressed debt and note sale markets in “loan-to-own” transactions. Where a restructuring or workout is not feasible, Glaser Weil attorneys assist our clients to navigate judicial or non-judicial foreclosures, litigation, receivership and/or bankruptcy proceedings.

Our litigators pursue or defend against fraudulent transfers and preference claims, pursue or defend commercial foreclosures and detainer actions, pursue claims and defenses in bankruptcy proceedings—including seeking relief from automatic stays, and either enforce or defend claims with respect to security interests and personal guarantees. We also negotiate or litigate disputes among property investors. Our litigators have a wealth of experience litigating residential and commercial foreclosure and eviction cases across the country, representing both commercial landlords and tenants. We have litigated issues of first impression and have tried cases and handled appeals in different jurisdictions arising from foreclosures and evictions. We also advise our lender and mortgage servicer clients on many issues related to lending and servicing, including advising our clients on loan modifications and other loss mitigation.

Our tax lawyers advise borrowers in connection with strategies to avoid cancellation of indebtedness or other taxable income, resulting from repositioning or recapitalizing financially distressed real estate projects, including preferred equity recapitalizations, underwater 1031 exchanges, loan workouts and structured sales. We also advise lenders and acquirors of distressed loan portfolios in connection with strategies to avoid phantom income in connection with loan workouts.

• Successfully litigated several workout matters and recovered attorneys’ fees, involving dissolution, reorganization and refinance of ventures, disputes between members, including claims for breach of contract, breach of fiduciary  duty and conflict of interest, removal of members, as well as disputes with lenders and investors. 
• Successfully represented more than 40 commercial real estate loan guarantors in resolving numerous litigation matters, each usually involving eight-figure exposures.
• Represented multiple clients in loan workouts involving companies that own or invest in a real estate project or a portfolio of real estate projects.
• Represent borrowers in connection with special and master servicers in defaulted or troubled loans, participated loans, multi-tiered “stack loans,” including intercreditor issues (mortgage and mezzanine loans), forbearance agreements and “loan to own” disputes.
• Represented clients in multiple works outs and restructurings involving affordable housing projects in California and throughout the United States, including in related litigation such as disputes concerning project damages by Superstorm Sandy in New Jersey.
• Represented an East Coast bank in the workout of a multi-million dollar, multi-state loan, involving 11 different hotel properties, including advising the client on complex "one form of action," deed-in-lieu of foreclosure and title issues.
• Provided tax advice to a joint venture between a California real estate investment manager and a private investment firm in connection with a $23 million preferred equity recapitalization of a distressed luxury boutique hotel located in Southern California.
• Represented several clients in multiple injunctive and summary judgment proceedings.
• Successfully litigated commercial evictions, unlawful detainer actions and commercial breach of lease cases for a number of financial services companies, including mortgage servicers, lenders, and fintechs.
• Represented a large multi-state financial services client in substantial workouts involving lenders, borrowers, and the lender’s receiver for the California Plaza post-foreclosure.

News