While the benefits to the borrower of a workout agreement are obvious, the advantage to the lender is that it avoids the expense and effort of recovery efforts such as foreclosure. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup We were able to quickly assemble […]. I am on the acquisitions team. This engagement required Durkin Group to be on-site every business day to monitor receivables, payables, inventory and cash flow. Some are vanilla Resi homes and sure, those are easy. During cash testing, our field examiner discovered that the owner of the company was diverting funds to a troubled exotic car business that he also owned.
Loan Workout/Special Assets Group (SAG)
The threat of lawsuits or repossession will not let you sleep. Advance notice to the lender and an honest assessment of the situation by the borrower's management are the keys to developing the trust necessary for a workout plan to succeed from the borrower's perspective. For that type of loan, certain modifications to the deal terms can result in taxable income to the borrower even if the principal amount of the loan is not reduced. If they read it all, this deal will never get documented!! In addition, for borrowers with debt that is regularly traded or for which price quotations are regularly available which is the case for many borrowers with syndicated term loans , the tax consequences can be worse. As capital requirements increase, so too does the expense associated with the loan. If this is you, we can help.
Overview | Restructuring & Loan Workout | Greenberg Glusker Fields Claman & Machtinger LLP
An amendment to the loan documents may or may not be executed in connection with a Waiver. Client Access Contact Us. The Loan Administration Coordinator plays an important role in the organization by performing a number of administrative-related tasks for the Loan Servicing Our group focuses on three principal areas of expertise: If this is you, we can help.
In addition to defending the interests of clients in response to known crises, Sacks Tierney continues to provide preventive counseling to clients seeking sound legal advice in their future planning and in problem avoidance. More importantly, our advisers understand the economics of these players' positions and the strategies they are likely to employ, as well as the legal and regulatory terrain in each state where those lenders' campaigns to enforce their rights will need to be waged. You are fairly certain that you are going to be dealing with a business that has fallen on hard times, but might be able to right itself. When you take out a home loan your home is collateral. Bank Debt Portfolio Group Overview:.