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When a real estate project goes bad for whatever reason – sales are slow or at prices below projections, leasing is slow, or there are extensive cost-overruns or regulatory delays – developers, investors, lenders, and others are left scrambling to restructure the project and salvage any value or at least limit losses. This often involves restructuring or possibly refinancing a loan. It may also involve additional equity.
Another option is selling the project, if possible. These processes can be complicated by the nature of the investors and lenders involved.
This program provides a practical guide to restructuring troubled real estate projects.
Part 2 topics include:
- Restructuring alternatives, including straight purchases, "Loan to Own," rescue capital/preferred stock/securities
- Drafting forbearance and loan modification agreements
- Receivership of distressed properties and planning to emerge from receivership
- "Loan to own" strategies and limitations
- Tax issues, including cancellation of indebtedness and restructuring recourse indebtedness
- Potential loss of valuable tax attributes and tax planning opportunities