Restructuring CMBS Debt

Restructuring CMBS Debt from Restructuring Advisory Group

By: Restructuring Advisory Group  10/17/2016
Keywords: Restructuring Advisory Group, cmbs restructuring expert

A sizeable portion of Restructuring Advisory Group’s (CRG) business is the restructuring and refinancing of debt that is not subject to a Chapter 11 and the refinancing and restructuring of CMBS loans. To that end, we have negotiated over $40M in CMBS loan modifications since 2013. We provide creative work-out financing that drives the negotiations forward to successful conclusion. Property owners with CMBS loan that have matured or are maturing face challenges that are unique to the CMBS deal structure. We are experts in dealing with the complex issues that are inherent to the CMBS loan structure and in negotiating Forbearance Agreements that mitigate the defeasance issues, the bad boy provisions and the imbedded corporate culture of obstinance, arrogance and disinterest that is common to the Special Servicers and the Master Servicers. Our expertise results in our being able influence the Master Servicer and the Special Servicer that in turn drives negotiations to a consensual restructures of what are very difficult to modify CMBS loans. We have had great success in negotiating interest rate reductions, maturity date extensions, interest only provisions, cash flow mortgages A and B note restructures and principal balance discounts. Our expertise drives the negotiating process forward offers solutions to the Master Servicer and the Special Servicer that directly benefit you. In addition to the conventional straight-forward deep cash discounts, we have negotiated CMBS loan discounts where a partial principal reduction payment is made through a new loan that consensually subordinates the balance of the CMBS loan to the new debt. Under that type of CMBS loan modification, we include provisions to take out the balance of the CMBS loan at a discount years down the road once the property is again performing and a conventional refinance can take out all of the loans with no equity infusion required of you on the front or the back end.

Keywords: cmbs restructuring expert, Restructuring Advisory Group,

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