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Converting Debt to Equity: An Alternative to Modification or Extension of Loans
The state of the office sector is grim. The end of the era of cheap money, coupled with a shift to remote work, has resulted in widespread value destruction and mounting distress. The tide of bad news is unlikely to recede any time soon. As has been widely reported, U.S. property owners must refinance $137 billion of office mortgages this year and nearly half a trillion dollars in the next four years, at a time of widespread lender retrenchment. Compounding the distress, spiking interest rates, coupled with the staggering cost of interest rate hedges for floating-rate loans, have dramatically raised the cost of the few loans on offer.
The Playbook, and the Case for Ripping It Up
When a borrower cannot repay a loan at maturity, lenders have customarily chosen between two options: modification and extension of the loan; or the exercise of the lender's remedies under the loan documents. Modification and extension agreements typically afford the borrower additional time to repay the loan, in the hope that market conditions will improve before the new maturity date. They also frequently afford the borrower additional relief, such as the right to accrue interest during the extension period, and even a promise of additional loan advances to fund tenant improvement and other costs required to reposition the asset. The exercise of remedies under the loan documents entails either judicial foreclosure or the delivery of a deed in lieu of foreclosure.
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Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?