COURSE DESCRIPTION
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 will provide you with a practical guide to restructuring troubled real estate projects.
Day 1
- Practical strategies for unwinding real estate deals outside of bankruptcy or litigation
- Negotiating, structuring and drafting the restructuring of failed real estate projects
- Underlying economics and tradeoffs of real estate restructuring
- Types of sellers and their impact on restructuring – individual owner, institutional, joint venture, private equity
- Complications and limitations involving syndicated loans, CMBS loans, and REMICs
- Navigating seller issues – personal guaranties, ongoing management fees, upside participation, reputation
Day 2
- 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
Speakers:
Anthony Licata is a partner in the Chicago office of Taft Stettinius & Hollister LLP, where he formerly chaired the firm’s real estate practice. He has an extensive practice focusing on major commercial real estate transactions, including finance, development, leasing, and land use.He formerly served as an adjunct professor at the Kellogg Graduate School of Management at Northwestern University and at the Illinois Institute of Technology. He speaks extensively on real estate topics nationally. Mr. Licata received his B.S., summa cum laude, from MacMurray College and his J.D., cum laude, from Harvard Law School.