Tag Archives: Notes A\B

A/B Note Structure Is Tough: More Points For Your Due Diligence List

By Keith Mullen on September 8th, 2011 Posted in Market Trends, Tough Times for Lenders, Training, Workout Issues

More on my focus on A/B Note structures (earlier posting), covering key structural points that surface during a workout involving both an A note and a B note: What is the credit support impact of the B note holders rights? Huge. If the intercreditor agreement (covering the relative rights of the A note holder and the… Continue Reading

Restructure the Loan Into Payment Tranches (Instead of Using an A\B Note Structure)?

By Keith Mullen on July 15th, 2011 Posted in Market Trends, Tough Times for Lenders

Over the last couple of years (wow . . . years – this has been one deep and long ditch), there has been a lot of talk about recapitalizing deals by bringing new investors or owners into commercial real estate deal that are underwater, or in the ditch. In other words, a new investor… Continue Reading

Is CRE In Recovery Mode? The Task List Tells Me . . . .

By Keith Mullen on May 10th, 2011 Posted in Good Times for Lenders, Market Trends, Training

So, where are we in the "stages" of the current commercial real estate cycle? Near the end? Midway? One way to measure is to examine "what" we’re doing – during our work day. This is not a measure of the market (number of defaults, etc.), but a look at our work – and "how" we… Continue Reading

Creative CRE Loan Modifications? All Hat & No Cattle in ’10

By Keith Mullen on December 17th, 2010 Posted in Market Trends, Tough Times for Lenders, Workout Issues

Remember the big splash made by the Federal regulators with their joint announcement of creative ways to restructure distressed commercial loans? Money Wise is having a 2 day twitter chat on loan modifications, where the non-performing loan is split into a performing Note A and a non-performing Note B. It’ll be a short chat from my… Continue Reading

CRE Workouts: Early Signs Of Banks Implementing the ‘Good’ Note A and ‘Bad’ Note B Approach?

By Keith Mullen on April 30th, 2010 Posted in Market Trends, Tough Times for Lenders

Previously, we commented on the October 30, 2009 regulatory announcement by Federal regulators, which articulated a significant switch or approach in the handling of distressed commercial mortgage loans. [links to two blog postings, including a copy of the announcement] One startling portion of the announcement is that banks are encouraged, in the appropriate circumstances, to… Continue Reading