Real Estate Advisory
Real Estate/Loan Restructuring & Workout
Today, many real estate investments and entities face the challenge of maturing debt, declining cash flow after debt service, complex capital structures and falling values. Owners and lenders alike face complicated issues and considerations in deciding whether and how to restructure to preserve value and potential upside, as well as maximize recovery. Declining values, debt service coverage ratios, and property fundamentals affect land development, hotels and resorts, retail properties and office buildings. Solving the complex business, tax and legal issues involved in extending and restructuring these deals requires a highly experienced and seasoned team of professionals.
Solutions
- Cash flow, liquidity, entity, asset and liability analyses
- Value and claim recovery analyses under liquidation, deed in lieu, foreclosure, and restructure scenarios
- Evaluate economic position, rights and remedies of various stakeholders; identify the business implications and leverage points of key agreements
- Identify assets to keep and where to concentrate restructuring efforts
- Identify loan restructuring and/or extension issues including pay downs, escrows, cash controls, A:B note splits, provisions for new money
- Develop strategies to preserve value, cut losses, save costs, improve operations and solve tax issues
- Develop business case for restructuring, modifying or extending loans
- Prepare term sheets and negotiate restructuring as appropriate
- Implement restructuring plan
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