Debt Workout and Restructuring
Eyzenberg & Company offers highly sophisticated advisory services for CMBS loan workout and restructuring situations. Our first-hand insider knowledge and understanding of the CMBS workout framework will enable us to help clients navigate to the most successful outcome possible.
Historically, assets go into workout and/or restructuring for various reasons. Whether due to technical default, overleveraging, underperformance, or simply poor timing leading to term default, each scenario greatly affects the remediation strategy. Today’s unprecedented market environment has led many owners to become unable to meet their debt service requirements for the time being. Our team has run workout groups for the largest lenders and special servicers in the industry, and is positioned to enable clients to reach optimal results.
CMBS workouts are unique with many factors coming into play that are not usually seen with balance sheet lenders. We help clients understand and factor in:
- The implications of the pooling and servicing agreement
- Controlling class bond holders’ interest and influence on the Special Servicer
- B-piece and Special Servicer’s decision trees
- The tax implications of various alternatives such as Deed in Lieu
- The risks and rewards of A/B note bifurcation, short sales, discounted payoffs, note purchases and extensions
One of our unique differentiators is our ability to simultaneously arrange debt and/or equity capital to consummate a resolution, providing a seamless process from start to finish.