I know that the subject of flood insurance has little "glitz" and that the narrow focus here is on co-lender deals (my other postings on this topic), but if – you’re in a multi-lender loan (participation, syndication, etc.) with federally regulated lending institutions where any portion of the real estate collateral is in (or even… Continue Reading
Tag Archives: syndication
Recent Case Points To Most Difficult Part Of Distressed Debt: the Lenders
Posted in Tough Times for Lenders, Workout IssuesAn article by Chad Eric Watt with the Dallas Business Journal gives a "real life" example of the nature of the "disputes" between lenders, when a loan goes into the ditch and the credit stack has multiple lenders. In his discussion of a Texas court decision involving Orix Finance and NexBank, Chad addresses the bigger picture… Continue Reading
Understanding Differences Between a Syndicated Loan & Participated Loan is Crucial When It Turns Bad
Posted in Good Times for Lenders, Tough Times for Lenders, Training, Workout IssuesAs I’ve noted previously [link to due diligence topics], one big difference between the current commercial real estate melt down and the last big one (in the late 80s) is the amount or level of “structure” in the deals. Like the last time, the debtor\borrower side is “structured” (with a multi-tier borrower and perhaps even a “single… Continue Reading
Lender Liability: Lender Suing Lender – The “New” Reality?
Posted in Lender Liability, Tough Times for LendersThe Zerohedge Blog [link] reports on a NY state court filing related to the high-profile Extended Stay Motel bankruptcy case. Zerohedge focuses on the hedge fund involvement in the case. I view it as the beginning of the lender liability battles between classes of lenders. Over the past several months, we’ve been giving presentations to our clients… Continue Reading
Co-Lender Mortgage Loan Structures: Understanding the Lender Structure is Critical (Second of Two-Part Series)
Posted in Tough Times for Lenders, Workout IssuesThis is the second of a two-part series (PART ONE) covering initial due diligence topics for workouts involving co-lender structures, with a focus solely on the participated or syndicated co-lender structure. The series is not a comprehensive listing of possible issues on this topic, but merely a basis template to assist you as you review… Continue Reading
Co-Lender Mortgage Loan Structures: Understanding the Lender Structure is Critical (First of Two-Part Series)
Posted in Tough Times for Lenders, Workout Issues1st in a series of 2 postings Much of the focus in the media on troubled real estate debt focuses on sophisticated debt structures, or on investors holding bonds in pools of loans. This focus, however, misses an important, intermediate player between these two ends of the barbell: the real estate lender. In several real… Continue Reading