Lender and Debtor Representation
Pedersen represents a diverse group of lender and debtor clients in the full spectrum of issues involving financially distressed entities, and non-performing real estate and financial transactions.
We have the industry-specific background knowledge and substantive experience to address even the most challenging insolvency-related disputes and restructuring transactions. In every engagement, we seek to deliver practical, cost-effective solutions that are individually tailored to each client's unique circumstances and situation.
We give comprehensive counsel to both lenders and debtors on all aspects of in-court and out-of court workout, restructuring, and reorganization issues. These include:
- Foreclosures and other disputes regarding lenders' rights and remedies
- Preference and fraudulent transfer actions
- Assignments for the benefit of creditors
- Debtor-in-possession financing
- Cash collateral arrangements and contests
- Uniform Commercial Code sales
- Forbearance agreements
- Capital market debt restructurings
- CMBS securitization portfolio defaults
- Deed in lieu transactions
- Intercreditor agreements
- Mortgage loan workouts and restructurings
- Subordination agreements
- Represented mezzanine lender in foreclosure and subsequent single asset real estate chapter 11 involving historic downtown Chicago building. Forced a 363 sale of the property at which our client was the winning credit bid.
- Representing a national bank as defendant in a multi-million dollar Ponzi scheme and related fraudulent transfer clawback action.
- Served as special securities counsel in the landmark case of Standard Oil and Exploration of Delaware, Inc., which approved a new financing technique for raising capital for companies in chapter 11 proceedings and resulting in a new public successor company.
- Represented the senior, debtor in possession lender in the chapter 11 liquidation of a large, "value-added" cattle breeding and selling operation.
- Represented large financial institution as the senior lender holding claims in excess of $45 million in the matter of an operating paper mill. Guided client through a cash collateral dispute, 363 Sale, and several mechanic lien disputes.
- Counseled the agent for a $25 million loan secured by 20,000 acres of undeveloped real estate in Colorado in the Delaware chapter 11 of the borrower. Successfully steered the case toward a 363 auction sale at which competitive bidding led to a greater than anticipated recovery for the lenders.
- Successfully represented a second-tier automobile industry supplier in its out-of-court workout. Successfully defended against an involuntary bankruptcy case filed by unsecured creditors: after trial, the bankruptcy court abstained in favor of the out-of-court workout.
- Represented an institutional client in its sale of a Honolulu, Hawaii office building out of its REO portfolio.
- Structured a series of forbearance agreements for a lender client related to the construction financing of a 100+- unit Chicago condominium complex.
- Structured forbearance and workout arrangements on behalf of a mezzanine lender that obtained additional collateral, allowed new equity participation, and renegotiated an intercreditor agreement.
- Represented the owner of high-end manufactured home communities in a recapitalization transaction involving the redemption of three out of five classes of interest.
- Represented a financial institution in settling a bond insurance policy exposure benefiting the State of Illinois.
- Obtained a settlement on behalf of a financial institution client involved in a distressed real estate transaction in which the client received more than $10 million as the present value of participation and was released of its risk on its $100 million credit enhancement exposure.
- Represented a financial institution in the sale of its REO portfolio of more than 45 nationwide commercial properties with an aggregate value of more than $500 million.
- Developed a program for an institutional client to sell defaulted mortgage loans on properties located throughout the Midwest to avoid the time and expense of taking title to distressed properties and selling them out of an REO portfolio.