Distressed Asset, Workout & Restructuring Strategy
Benesch’s Distressed Asset, Workout & Restructuring Strategy Team offers comprehensive representation and advisory services to banks and other financial institutions, businesses, real estate developers, borrowers and investors in connection with troubled loans and distressed assets across a wide range of complex financing structures. This includes bank-syndicated financings, bond financing transactions, real estate transactions and financings to borrowers in regulated industries.
The attorneys in Benesch’s Distressed Asset, Workout & Restructuring Strategy Team are adept at delivering strategic solutions in all phases of troubled loan resolution, including preventative maintenance and planning as part of a workout or in anticipation of bankruptcy or litigation, advising on foreclosure issues, performing thorough real estate and environmental due diligence on collateral, and advising on the realization and value of such collateral.
Our team’s deep experience enables us to craft timely, practical solutions for our clients, no matter the economic environment. We prioritize a cost-effective approach that upholds Benesch’s reputation for superior legal work without compromise.
Benesch’s Distressed Asset, Workout & Restructuring Strategy Team is led by partners Ross Kirchick and Jeffrey Wild, who also chair the firm’s Commercial Finance & Banking Practice Group and Real Estate Practice Group, respectively. A multi-disciplinary team of key attorneys from each of these groups, together with the Litigation, Insolvency & Creditors’ Rights and Corporate & Securities Practice Groups, completes our robust team.
Commercial Finance & Banking
Our team has extensive experience in documenting, negotiating and administering complex commercial loan and financing transactions and debtor-in-possession financing. Additionally, we regularly advise lenders on collateral disposition and other strategic collateral issues, as well as in the day-to-day maintenance of existing credit facilities and modifying existing loan documentation to accommodate changes in a borrower’s business and creditworthiness.
Insolvency & Creditor’s Rights
Our attorneys have vast experience in all facets of Chapter 11 and related insolvency litigation, including the use of cash collateral, the enforcement of secured creditors’ rights and interests in collateral, and advising lenders in troubled debt restructurings or loan workouts.
Benesch’s Real Estate Practice Group is well-versed in representing lenders and borrowers in real estate financing arrangements involving conventional financing, publicly assisted financing and tax credit financing, as well as in representing a range of clients in connection with the acquisition or disposition of all types of real property, including sophisticated multi-state transactions, portfolios of shopping centers, office and industrial buildings, and representing landlords, tenants, developers, lenders and other parties having an interest in real estate.
Experience
- Represented a distressed debt fund as real estate counsel for its acquisition of a defaulted mortgage loan from a large multinational bank for over $125 million, subsequent deed-in-lieu transaction, release of existing financing and new acquisition financing of over $100 million for a portfolio of approximately 80 sites across 14 states (formerly occupied by a bankrupt retailer), and the subsequent redevelopment, leasing and disposition of such assets.
- Represented a mezzanine lending division of a public REIT in workout, foreclosure proceeding and eventual debt sales related to $13 million mezzanine acquisition loan for redevelopment of property in Michigan.
-
Represented a joint venture between a NYSE-listed REIT and a private equity fund in connection with a multijurisdictional deed-in-lieu of foreclosure and “friendly foreclosure”, pursuant to which a large shopping center that was situated on the border of two states was conveyed to the lender as part of two separate, but simultaneous transactions in order to avoid judicial foreclosure.
- Represented a national lender in connection with forbearance, workout and eventual refinance of $6 million, 112 acre land loan and associated issues with challenges around development.
- Represented a national lending institution in connection with a troubled real estate development loan relating to a proposed mixed-use project, including documentation of a pre-negotiation agreement with the borrower, negotiation of loan modification terms, and securing additional collateral.
- Represented a private developer and a pension fund in connection with the recapitalization of portfolio of shopping centers, to avoid a maturity default on a CMBS loan.
- Represented a lender in the forbearance and modification of two distressed bridge loans to two affiliated borrowers ($88 million total debt) to provide additional predevelopment capital, cross-collateralize the two loans and provide additional security to the lender.
- Represented an administrative agent in connection with workout and forbearance of syndicated seven-property $63MM nursing home loan.
- Represented a lender in acquiring a 15-story apartment/mixed use property by deed-in-lieu of foreclosure of a $32 million mortgage after the lender purchased the loan at auction.
- Represented a developer in purchasing an $18 million loan in foreclosure secured by a mortgage on a shopping center development that was under construction. The transaction included dealing with the borrower’s mezzanine lender, development agreements with an anchor retailer developing its own pad within the shopping center, entitlement, concurrency and permit issues, and millions of dollars in mechanic’s liens. Also represented the developer/purchaser in financing the purchase of the distressed loan.
- Represented a national, private developer/owner in connection with a deed-in-lieu of foreclosure transaction in which it conveyed a shopping center back to the lender.
- Represented an investor/developer in purchasing a $14 million loan in foreclosure secured by a mortgage on a 134,000 square foot office building and multi-story parking garage, and then acquiring such properties at the foreclosure sale.
- Represented a NYSE-listed REIT in connection with the negotiation of deed-in-lieu of foreclosure transactions in which it conveyed shopping centers back to the lender.
- Represented a mezzanine lender with respect to such lender’s subordinated secured debt position and equity co-investment in connection with financing provided to a troubled borrower in the automotive industry.
- Represented a national lender in forbearance and restructuring of $12 million construction loan and regulatory issues related to construction that did not comply with department of health regulations for Illinois nursing home.
- Represented a national banking institution with respect to loan workouts involving approximately $100 million of loans secured by distressed real estate assets, including documentation of loan modification terms, handling negotiations relating to additional collateral, navigating inter-creditor issues and lending group concerns, and advising as to bankruptcy filing implications.
- Represented the lender in negotiating a forbearance agreement with a borrower on a loan secured by a mortgage on a shopping center. The forbearance agreement addressed cash-flow issues due to tenant vacancies, deferred maintenance, delinquent real estate taxes and failure to fund the required escrows.
- Represented a national lending institution in connection with multiple loan workouts involving a real estate loan portfolio comprising approximately $15 million in construction loans and permanent mortgage financing to a borrower and its affiliates, more than ten separate office, warehouse and residential properties and developments, and nearly twenty separate guarantors.
