We’re in that part of the cycle where many of us are focusing on guaranty agreements, which run the full spectrum from full payment and performance guaranties to “bad boy” indemnification agreements (my recent comment). One issue being litigated is the bad boy or recourse event tied to a breach of these types of covenants… Continue Reading
Tag Archives: SPE
Special Purpose Vehicle (SPE): Comment in Recent US Supreme Court Case Encourages Bankruptcy Risk
Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Workout IssuesRecently, Professor Joshua P. Fershee posted a very interesting observation on the Business Law Prof Blog. Professor Fershee comments on a legal concept called the "single enterprise" theory, and on references to this concept by the US Supreme Court in a decision published by it this past summer (Goodyear Dunlop Tires Operations, S.A. v…. Continue Reading
Tips on Bad Boy Carveouts: Don’t Overlook These (Surprising?) Sources of Liability
Posted in Remedies, Single Purpose Entity, Tough Times for LendersRecourse against individual owners or sponsors (and\or their operating companies) is a significant leverage point for any lender in a distressed commercial real estate loan. Both CMBS loans and portfolio loans (typically life company) technically are “non-recourse” in that the lender agrees to look to the collateral for the ultimate recovery of the loan. However, the… Continue Reading
CMBS 2.0 Taking Shape: How Does It Differ From CMBS 1.0?
Posted in Good Times for Lenders, Market TrendsWe all know that recovery for the commercial real estate market will depend, at some level, on greater liquidity in the credit markets. Sure, owners will need to "right size" or revalue their property (by paying down their current debt, purchasing their current debt at a discount, etc.), but eventually the time will come when… Continue Reading
Revisiting Your Collateral Description: Is Your Description of Personal Property [Owned By A SPE Borrower] Correct?
Posted in Single Purpose Entity, Tough Times for Lenders, Workout Issues. . . continuing my discussion with Nelson Block** on the basic and important question of collateral descriptions: Keith: Pick one of the biggest changes or trends over the last 15 years on the topic of collateral descriptions. Nelson: In the last decade, with the rise of single asset developments, there should be no reason to limit… Continue Reading
SARE Cases Causing Big Stir in Bankruptcy Courts
Posted in Single Purpose Entity, Tough Times for LendersGuest Writer – Eli O. Columbus, Winstead PC What is a SARE case? SARE stands for Single Asset Real Estate and is commonly used to describe bankruptcy cases involving debtors who own a single real estate parcel or project. Given the economic climate, we have seen a recent surge in SARE bankruptcy filings and Winstead… Continue Reading
Into the Looking Glass: MBA Servicing & Technology Conference – day two
Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Tough Times for Lenders, Workout IssuesYesterday (Thursday) was the second, and my last, day of the conference. As I did with the first day of the conference, I summarize some of the sessions. So, here’s the executive summary: From a session on bankruptcy issues: as reported by the Commercial Mortgage Securities Ass’n in its press release, the bankruptcy court in the General… Continue Reading
Into the Looking Glass: MBA Servicing & Technology conference – day one
Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Tough Times for Lenders, Training, Workout IssuesThe first day of the 2009 MBA’s Commercial/Multifamily Servicing and Technology conference has ended. It has been a long day, filled with attending panel presentations and meetings with people over meals, in the halls and at receptions. It started at a 7:30 breakfast and ended @ 10p (when I refused to join a group that headed toward… Continue Reading