Unwinding a Commercial Real Estate Transaction Gone Bad, Part 2 - 2019

Originally presented on July 3, 2019

When a real estate project goes bad for whatever reason – sales are slow or at prices below projections, leasing is below break-even, or there are extensive cost-overruns or regulatory delays – developers, investors, and others are left scrambling to restructure the project and salvage any value or at least limit losses.   This often involves restructuring or possibly refinancing a loan.  It may also involve seeking additional equity.  Another option is selling the project, if possible.  These processes can be complicated by the nature of the investors and lenders involved.  This program will provide you with a practical guide to restructuring troubled real estate projects.  

• Restructuring alternatives, including straight purchases, “Loan to Own,” rescue capital/preferred stock/securities
• Drafting forbearance and loan modification agreements 
• Receivership of distressed properties and planning to emerge from receivership
• “Loan to own” strategies and limitations 
• Tax issues, including cancellation of indebtedness and restructuring recourse indebtedness
• Potential loss of valuable tax attributes and tax planning opportunities 

Speaker: Anthony Licata, Taft Stettinius & Hollister LLP, Chicago, IL

NOTE: This program was originally produced as a telephone seminar and is available on demand in streaming audio. This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics or elimination of bias credit.