Structuring Commercial Real Estate Workouts: Alternatives to Bankruptcy
and Foreclosure, Second Edition presents a concise introduction to the
legal and business considerations involved in real estate loan workouts. It is
designed to aid lenders, borrowers and their legal counsel in confronting the
variety of issues encountered in working out an acceptable solution to the
dilemma posed by a loan in default.
The parties associated with a defaulting loan face a number of potential
pitfalls, ranging from imminent insolvency of the borrower (and the diminution
in value or loss of a lender's security interest) to draconian penalties
incurred through liability for environmental hazards present on the property.
Structuring Commercial Real Estate Workouts introduces the varied
issues, discusses the limitations and advantages of foreclosure and other
remedies, and presents suggestions for guiding potential alternative courses
of action.
The Second Edition features extensive coverage of environmental
liabilities that may arise under federal statutes and regulations such as RCRA
and CERCLA and how lenders can avoid or minimize these liabilities. A new
chapter has been added on the state mini-RCRAs and CERCLAs, necessitated by
the growing importance of state environmental laws to real estate financing. A
detailed discussion is presented on the laws and programs that have been
developed to minimize lender liability at "brownfields" sites in urban areas.
Excellent coverage is provided for such key areas as prepackaged plans, single
asset real estate cases, cash collateral and adequate protection, deeds in
lieu of foreclosure and dealing with guarantors and other sureties.
