Pedersen & Houpt's interdisciplinary restructuring and workout practice is comprised of attorneys with the knowledge and experience to address the breadth of a client's issues in a workout and restructuring context.  Our attorneys have worked with parties in virtually all roles in distressed real estate and non-performing financial transactions and on behalf of clients in myriad industries.  We strive to develop and implement creative solutions for our clients.

In situations where a restructuring solution is not practical, our attorneys have worked on formulating consensual settlements; where a consensual settlement is not possible, we have participated in court appointed receiverships, foreclosures and bankruptcy proceedings.

Workout and restructuring transactions can be very challenging.  Our attorneys have the experience to help formulate creative and pragmatic solutions to complex, diverse and often divisive issues, where creativity, timing and cost effectiveness are often critical factors to the success of the workout and restructuring transaction.

Our workout and restructuring services include:

•           Bankruptcy

•           Capital Market Debt Restructurings

•           Cash Flow Mortgages

•           CMBS Securitization Portfolio Defaults

•           Credit Enhancement

•           Deed in Lieu Transactions

•           Environmental Cleanup

•           Enforcement Proceedings

•           Equity Participations

•           Forbearance Agreements

•           Foreclosures

•           Intercreditor Agreements

•           Mechanics' Liens

•           Mezzanine Loan Workouts and Restructurings

•           Mortgage Foreclosures

•           Mortgage Loan Workouts and Restructurings

•           Non-Performing Mortgage Loan Portfolio Divestitures

•           Receiverships

•           Subordinated Debt

•           Subordination Agreements

•           Tax-Exempt Bond Restructurings

Representative Engagements 

Attorneys at P&H have handled the following matters:

Representation of bondholders (including bond funds and other institutional holders) on tax, regulatory, securities and real estate law issues relating to the workout of a financially troubled nursing home facility in Lincolnwood, Illinois which was the subject of a complex tax-exempt bond financing.

Representation of an owner of multiple high-end manufactured home communities in a recapitalization transaction involving the redemption of three out of five classes of interest.

Representation of a private equity investor with respect to its acquisition of a distressed company.  The investor paid cash and made a capital contribution in exchange for the equity ownership interests of the company.  In conjunction with, and as a condition of the purchase, we negotiated with the company's senior lenders to modify material covenants of the company's financing agreement to bring those covenants more in line with the company's expected economic performance and to eliminate all prior covenant defaults.

Representation of a high-end recreation wear retailer in a capital restructuring involving the investment of equity.  This restructuring resulted in the creation of four classes of preferred stock and included negotiated concessions.

Representation of a credit enhancer in the development and implementation of a short term $39 Million taxable bond structure for issuance by the Nevada Housing Division to refinance a troubled 800-unit apartment project in Sparks, Nevada, allowing the credit enhancer to avoid an estimated $10 Million loss.

Representation of a financial institution in the settlement of bond insurance policy exposure benefiting the State of Illinois and relating to a hotel and convention facility located in central Illinois.

Representation of a financial institution in working out and restructuring approximately $600 Million of aggregate indebtedness involving approximately 50 real estate projects located throughout the United States.

Representation of a financial institution to monetize certain cash flow participation rights obtained from a real estate developer in a previously restructured real estate portfolio which was ultimately purchased by a publicly held real estate investment trust.  The settlement resulted in the client receiving in excess of $10 Million as the present value of the participation, and release of its risk on its $100 Million credit enhancement exposure.

Representation of a financial institution in the sale of its REO portfolio containing in excess of 45 commercial properties located throughout the United States with an aggregate value in excess of $500 Million.

Development of a program for an institutional client to sell defaulted mortgage loans on properties throughout the Midwest to avoid the time and expense of taking title to distressed properties and selling them out of an REO portfolio.

Representation of a Chicago area bank in a deed in lieu of foreclosure transaction involving multiple apartment complexes and raw land in satisfaction of a $70 Million first mortgage loan.

Representation of an institutional client in the sale of an office building located in Honolulu, Hawaii out of its REO portfolio.

Representation of an institutional client in the negotiation of a consensual foreclosure on a shopping mall in Topsham, Maine involving a complex ground lease and ownership structure.

Representation of a lender in a series of forbearance agreements related to the construction financing for a 100+ unit condominium development in Chicago.

Structuring of forbearance and workout arrangements on behalf of a mezzanine lender to obtain additional collateral, to allow new equity participation and to renegotiate an intercreditor agreement to gain consent of mortgage lender to mezzanine lender's first lien on new collateral.

Negotiation of a forbearance agreement on behalf of a mezzanine lender that agreed to temporarily reduce interest rates and refrain from exercising its rights under the loan documents in consideration of borrower's agreement to pledge additional collateral and raise additional equity or refinance the loan within 150 days.

Representation of developer in completing a deed in lieu of foreclosure transaction of five properties located in Chicago and securing a $300 Million first mortgage loan.

Foreclosure of commercial properties, including retail shopping centers.  Obtained court appointed receivership to collect rents and manage property during foreclosure process.

Representations of lenders in Chapter 11 bankruptcy proceedings, including work on lifting automatic stays.

Strict foreclosure of pledged membership interests in limited liability company to avoid delay of judicial foreclosure against real estate assets.

Representation of senior lender in obtaining an injunction against a mezzanine lender from interfering with a developer's sale of condominium units in order to force payment on junior mezzanine debt.