Finance, Restructure and Workout Group

Rackemann’s Finance, Restructure and Workout Group offers its clients a multi-disciplinary team of experienced lawyers to advise and respond to both the challenges and the opportunities facing financial institutions, businesses and investors in this extremely difficult economic environment.

Rackemann’s Finance, Restructure and Workout Group focuses primarily on (i) the management and disposition of troubled real estate assets, (ii) the restructuring and disposition of debt instruments secured by troubled real estate assets, and (iii) the acquisition of troubled real estate assets and the acquisition of debt instruments secured by those assets.  Within this primary focus, Rackemann’s Finance, Restructure and Workout Groupadvises financial institutions, investment companies and partnerships, closely-held companies, trustees and high-net-worth individuals.  Rackemann’s breadth and depth of experience in all aspects of real estate -- ownership structure, acquisition, finance, permitting, development and disposition, together with their related income tax aspects -- provides a solid and powerful foundation for both practical and sophisticated advice and assistance in dealing with distressed real estate assets and their related debt and security instruments.

Our Finance, Restructure and Workout Group expertise includes the following: 

Management and Disposition of Troubled Real Estate Assets 

• Document Review/Due Diligence
• Default Notice/Demand for Payment/Deficiency Notice
• Management/Disposition
  • Foreclosure
    • judicial process
    • relief from stay in bankruptcy
    • preference litigation
    • lender liability litigation
    • fraudulent conveyance litigation
  • Management/disposition (other than foreclosure)
    • deed-in-lieu
    • tax-free exchange of real estate by owner
    • permitting/re-permitting and other "re-positioning" considerations
    • environmental considerations
    • record title considerations
  • Income Tax Consequences to Mortgagee and Mortgagor.

Restructuring and Disposition of Debt Instruments

• Document Review/Due Diligence (including retrieval of debt instruments that were ‘bundled’ and sold or assigned to servicing agents)
• Default Notice/Demand for Payment/Deficiency Notice
• Restructuring of Debt Instruments (and Associated Collateral)
  • Forbearance agreements
  • Reduction of principal/partial payment of principal
  • Reduction of interest rate/adjustment of interest into “tranches” with different rates/accrual of interest
  • Additional collateral/guarantor(s)
• Income Tax Consequences to Creditor and Debtor
• Conversion of Debt into Equity
  • Issuance of partnership (limited liability company) interest in consideration for transfer of debt instrument to partnership (limited liability company)
  • Income tax consequences to creditor and partnership (limited liability company).

Acquisition of Troubled Real Estate Assets and Debt Instruments

• Document Review/Due Diligence
• Acquisition of Troubled Real Estate Assets
  • Foreclosure
  • Deed-in lieu
  • Tax-free exchange of real estate by owner
  • Permitting/re-permitting and other “re-positioning” considerations
  • Environmental considerations
  • Record title considerations
• Acquisition of Debt Instruments
  • Purchase by “unrelated” (for income tax purposes) party at a discount
  • Acquisition Agreement
  • Financing Documents/Collateral
• Income Tax Consequences to Seller and Purchaser (including cancellation of indebtedness, market discount and original issue discount issues).
  
  Rackemann’s Finance, Restructure and Workout Group approaches each of its client engagements in the same manner as does Rackemann with every client engagement -- namely, in a manner focused on optimal results at a reasonable cost.  We use only the minimum number of lawyers necessary and we only use experienced lawyers; and our fees (whether based on hourly rates or otherwise) are extremely competitive.

If you would like to discuss any aspect of our Finance, Restructure and Workout Group services, please contact:

 Frank De Vito at (617) 951-1112 or fdevito@rackemann.com