Workouts
Our attorneys assist clients in connection with out of court restructuring of lending and joint venture relationships in commercial and residential real estate projects and investments. We have represented lenders, borrowers, investors and receivers in a wide variety of workout situations. We counsel clients about California's complex "one action" rule and antideficiency laws and assist with deed in lieu transactions and foreclosures.
Representative Transactions include:
- Counseling a large investor client with stakes in a number of development ventures facing actual and threatened foreclosure by various project lenders and threats against loan guarantees amid deteriorating relationships with venture partners. Ultimately, we developed a strategy using leverage from existing buy/sell and other venture contract provisions, combined with swapping various venture interests with other partners, that allowed the investor to exit all of the troubled relationships without any residual liability.
- Representing a receiver in managing, maintaining, marketing and selling, pursuant to detailed and complex court orders, free from existing liens, a portfolio of properties previously owned by a prominent homebuilder that had filed bankruptcy.
- Representing a majority owner of a troubled joint venture in purchasing the venture debt from a large bank, documenting and closing a deed in lieu transaction with the venture and negotiating a consent and release with the minority owners to permit these transactions.