Structuring Commercial Real Estate Workouts: Alternatives to Bankruptcy and Foreclosure, 2nd Edition

W. Wade Berryhill, University of Richmond
Joel B. Eisen, University of Richmond

Co-authored with Joel B. Eisen and Michael J. Herbert.

Abstract

Structuring Commercial Real Estate Workouts: Alternatives to Bankruptcy and Foreclosure, Second Edition presents a concise introduction to the legal and business considerations involved in real estate loan workouts. It is designed to aid lenders, borrowers and their legal counsel in confronting the variety of issues encountered in working out an acceptable solution to the dilemma posed by a loan in default.

The parties associated with a defaulting loan face a number of potential pitfalls, ranging from imminent insolvency of the borrower (and the diminution in value or loss of a lender's security interest) to draconian penalties incurred through liability for environmental hazards present on the property. Structuring Commercial Real Estate Workouts introduces the varied issues, discusses the limitations and advantages of foreclosure and other remedies, and presents suggestions for guiding potential alternative courses of action.

The Second Edition features extensive coverage of environmental liabilities that may arise under federal statutes and regulations such as RCRA and CERCLA and how lenders can avoid or minimize these liabilities. A new chapter has been added on the state mini-RCRAs and CERCLAs, necessitated by the growing importance of state environmental laws to real estate financing. A detailed discussion is presented on the laws and programs that have been developed to minimize lender liability at "brownfields" sites in urban areas. Excellent coverage is provided for such key areas as prepackaged plans, single asset real estate cases, cash collateral and adequate protection, deeds in lieu of foreclosure and dealing with guarantors and other sureties.