Since the election of President Gustavo Petro, Colombia’s executive has repeatedly proposed structural reforms that undermine foreign investment across sectors, reflecting a worrisome trend across Latin America. Despite...more
Many owners of commercial properties across the country encumbered by mortgage debt are still struggling to navigate the distressed real estate market, primarily due to their inability to pay current debt service resulting...more
When commercial real estate loans go into default, workouts are often pursued to resolve the default by agreement. What are the common forms of workout agreements? For commercial real estate borrowers in default, it’s...more
A number of factors have combined to cause an almost “perfect storm” for commercial real estate distress. The COVID-19 pandemic led to a rise in remote and hybrid work, increasing vacancy rates and decreasing property values....more
In light of the current economic climate, real estate lenders and borrowers will certainly be communicating with one another frequently concerning potential loan modifications and accommodations. It is prudent for lenders to...more
Justice Ignazio ("Nace") John Ruvolo once observed that the "Illegality of contracts constitutes a vast, confusing and rather mysterious area of the law." McIntosh v. Mills, 121 Cal. App. 4th 333, 344 (2004). One confusing...more
While the ramifications of the Covid-19 pandemic for real estate lenders and borrowers will unfold over time, at this point we know that lenders and borrowers will be communicating frequently and extensively regarding...more
In many cases, borrowers and lenders are working together to weather this crisis. A forbearance agreement is often the first step—after a pre-negotiation agreement is entered into. A forbearance agreement can benefit both...more
The coronavirus pandemic is resulting in a wave of forbearances and workouts. A frequent first step is the pre-negotiation agreement. A good PNA should be quickly negotiated but carefully considered, getting both parties to...more
In this challenging and rapidly changing environment, real estate players are dealing with the effects of COVID-19 on real property operations in real time. As they make decisions at an accelerated pace, they should bear in...more
The last few weeks have been very rough on borrowers, particularly in the hospitality and retail industries. Although there are a lot of unknowns surrounding COVID-19 and its impact on our health and economy, we do know that...more
The time is nigh. The COVID-19 pandemic makes a significant economic downturn in 2020 more probable than ever. More than a decade after the start of the Great Recession, we stand at the precipice of another recession. It was...more
The word "looming" seems to have become very popular during the past several years within the context of describing potential commercial credit maturities and defaults and, more recently, a potential recession. "Looming" may...more
In the letter opinion of Windsor I, LLC v. CWCapital Asset Management LLC, C.A. No. 12977-CB (Del. Ch. July 31, 2017), the Court of Chancery determined the enforceability of an agreement to negotiate, under Maryland law. ...more
Windsor I LLC v. CWCapital Asset Management LLC, C.A. No. 12977-CB (Del. Ch. July 31, 2017) - In this decision, the Court of Chancery declines to enforce an agreement to negotiate, applying Maryland law. ...more
Does a lender have a duty to act in good faith when negotiating with a borrower during a commercial loan modification? In an order issued recently by the United States Bankruptcy Court for the Eastern District of North...more
Pre-negotiation agreements ("PNA’s") are contractual arrangements in which a lender and a distressed borrower agree to negotiate the terms of a potential workout or settlement. The primary purpose of a PNA is to foster an...more
Baker Donelson's CMBS Special Servicer team recently lead a training session for one of our clients on unique issues and strategies involved with defaulted loans involving tenant in common (TIC) borrowers. We have seen...more
In a recent decision from the California Court of Appeals entitled Jolley v. Chase Home Finance, LLC, the Court severely curtailed lenders’ ability to dispose of lender liability claims on summary judgment, thereby adopting a...more
The California Supreme Court recently held that a borrower may rely upon oral promises to support a fraud claim against its lender even when such oral promises contradict the written agreement....more