ABI: CMBS Restructuring Strategies

According to Trepp, $109 billion in commercial mortgage-backed securities (CMBS) loans was issued in 2021. These loans are popular among income-producing-property investors for a variety of reasons, including favorable rates, attractive loan-to-value ratios, a streamlined underwriting process and more. However, given their structure as investment vehicles, technical nuances come into play in workout and restructuring situations because of the special servicers and trustees involved. While bankruptcy filings are rare because filing typically violates a loan covenant known as a “Bad Boy provision,” for some borrowers this path makes sense. This program will focus on these issues and more to prepare attorneys, financial advisors and other professionals for future restructuring assignments in this unique space.