Loan Modifications and Restructuring

  • Overview
  • Attorneys

The problems created by the recent recession demand lawyers experienced in real estate, tax, finance, environmental, public finance, bankruptcy and litigation who are able to provide a comprehensive road map for clients dealing with troubled loans and distressed assets. The teams of lawyers at Kutak Rock understand our clients’ common interest in producing a cost-effective path to a workout or restructuring that will maximize the remaining value of an asset or reduce the potential loss. That path may involve a loan restructuring, negotiated workout, foreclosure, note sale, recovery litigation or bankruptcy. These complex modern entity and loan structures require a multi-disciplinary approach as we find creative and effective solutions for our clients.

Kutak Rock’s nationally recognized expertise in real estate, tax, finance, environmental, public finance, bankruptcy and litigation provides each client with the clear and comprehensive analysis necessary to understand the nature of the problem and to design resourceful and practical solutions appropriate for the client’s particular position or role in a transaction. We understand the different perspectives that exist in order to address the needs of institutional investors, lenders, commercial banks, credit enhancers, real estate investments trusts (REITs), insurance companies, real estate syndicators, mezzanine lenders, CMBS servicers, special servicers, fund managers, and new markets tax credit (NMTC) and low income housing tax credit (LIHTC) investors or borrowers.

We have represented clients regionally and nationally in many workout areas, including large, complex financing restructurings and dividend loan and asset portfolios, as well as single asset loan foreclosures and workouts. Our expertise includes the following:

  • Assessment and creation of strategies involving the acquisition, disposition, operation or development of distressed assets or debt;
  • Recovery of loan balances;
  • Evaluation of creditor remedies and workout and settlement alternatives;
  • Navigation of complex intercreditor issues among senior, subordinate and mezzanine loan providers;
  • Handling distressed assets or debt involved in complex financing arrangements, including securitizations, NMTC, LIHTC, and tax-exempt bond financings;
  • Analysis of tax, securities and environmental implications of any proposed remedial actions;
  • Structuring and documentation of forbearances, discounted payoffs, forgiveness or deferral of debt, restructurings, out-of-court workouts, deeds in lieu of foreclosure and settlements;
  • Filing and processing of real property receiverships, and real property and UCC foreclosures;
  • Prosecution or defense of lender liability claims
  • Handling bankruptcy and receivership proceedings;
  • Facilitating debtor-in-possession financings; and
  • Representing court-appointed committees of creditors, post-petition lenders and parties acquiring bankrupt entities or their assets.