Commercial lenders are relying heavily on loan modifications to steady the cashflow for businesses during the COVID-19 economic fallout. Although other workout remedies remain available, lenders have been more willing to modify distressed loans as they recognize the unprecedented challenges faced by borrowers who may not qualify for government assistance. It is, therefore, important for both lenders and borrowers to understand their relative leverage in order to negotiate a mutually beneficial loan modification.
In a recent article for Law360, CGS3 partner Fernando Landa, an expert in distressed real estate workouts and member of the firm’s Distressed Assets practice team, lays out the most effective loan workout strategies and what to expect if the recession drags on for a long time.
Read the full article from Law360 here (subscription required).