With COVID-19 having shut down many businesses, lenders increasingly are worried about their borrowers’ ability to repay loans. Lenders are concerned about the value of their collateral because of the loss of the spring...more
Everyone is familiar with the “Rock, Paper, Scissors” method of resolving disputes where scissors cut paper, paper covers rock, and rock breaks scissors. In Futuri Real Estate, Inc. v. Atlantic Trustee Services, the Virginia...more
European Leveraged Finance Client Alert Series: Issue 6 July, 2019 - Sub-investment grade rated property companies in the German market are increasingly supplementing conventional real-estate senior secured bank financing...more
In California, priority between competing liens on the same real property is usually determined by the “first in time, first in right” rule. Under that rule, different liens on the same property have priority according to...more
Recently, in Official Comm. of Unsecured Creditors v. Victory Park Capital Advisors, LLC (In re Katy Indus., Inc.), Case No. 17-50937 (Bankr. D. Del. July 6, 2018), the Bankruptcy Court for the District of Delaware dismissed...more
What is an SNDA? An SNDA, or subordination (the “S”), non-disturbance (the “ND”) and attornment (the “A”) agreement, is an agreement between the lender providing financing to the landlord and a tenant of the property. ...more
It is often the case that parties enter into a lease thinking it is a temporary use of space by the tenant, which frequently amounts to nothing more than an expense line item on the budget. However, if a lease is structured...more
On March 13, 2015, the United States District Court for the District of Delaware, in the case of Walnut Creek Mining Company v. Cascade Investment, LLC, Civ. No. 14-738-LPS (In re Optim Energy, LLC, Bankr. Case No....more
In a recent case — In re Optim Energy, LLC — the Delaware Bankruptcy Court denied an individual creditor’s request to pursue the subordination or recharacterization of the claims of secured lenders who were also the debtors’...more
Tenants’ limited recourse to their landlords has made “offset rights” a major issue in negotiating Subordination, Non-Disturbance and Attornment Agreements (SNDAs). Tenant offset rights arise when the tenant has the...more
In Citizens Business Bank v. Gevorgian (2013) 218 Cal.App.4th 602, the Court declined to enforce a subordination agreement, where modifications to the underlying loan accomplished through a “side letter” to the construction...more
Subordination, Non-Disturbance and Attornment agreements (SNDAs) allow lenders, landlords and tenants to collectively plan for the worst case scenario — foreclosure. In the event of foreclosure and in the absence of an SNDA,...more
Most lenders that service second mortgages or equity lines have received requests to subordinate their loan to a subsequent refinance loan. Many times these requests come years after the refinance loan was closed. Most...more