We work with distressed structured products and have intensive expertise in the intricacies of each type of investment as well as a unique understanding of the economic, legal, and practical challenges that the current economic environment poses for those in the government and private sectors. We are in a unique position to address the issues raised by these troubled investments. Our collective experience in this field, including the creation and structuring of derivatives, securitized products, structured commercial real estate products, commercial and residential mortgage-backed securities, collateralized debt obligations, and synthetic securities, has given us tremendous insight into the rights, obligations, issues, and concerns of the parties involved in these transactions. We have a long history of bringing parties together to resolve difficult issues and achieve successful results.
Our expertise lies in assessing each situation and its attendant issues and providing a unique and solution-centric product, but is not limited to:
- Exit Financings
- Super-Priority Financings
- Debtor-In-Possession Financings
- Rescue Financings
- M&A Bridge Finance
- Pre-Pack Financings
- Post-Petition Credit
As a result of our extensive experience, we are active in the workouts of troubled structured vehicles, helping to evaluate and resolve exposures setting vehicles to acquire troubled assets. We are also active in all forms of securitization, and are well-positioned to assist servicers and issuers in connection with workouts of commercial mortgage loans in order to help alleviate or respond to stress on related properties, help the parties navigate the often complex requirements and limitations, and negotiate workouts on defaulted assets. Many of our workout assignments have involved securitized mortgage loans, requiring us to consider the interests of certificate holders, junior participation holders/B Note holders, mezzanine lenders, servicers and trustees. Similarly, our extensive experience in the origination of mezzanine loan financings, in many cases with numerous levels of mezzanine sub debt and complicated intercreditor arrangements among the mortgage lender and various mezzanine lenders, makes us uniquely qualified to analyze and evaluate the rights and remedies, and related risks, facing mezzanine lenders with troubled loans.
In connection with workouts of distressed and defaulted asset backed securities, CDOs, commercial real estate CDOs, CLOs and leveraged loan warehouse transactions, both cash and synthetic, we have conducted extensive negotiations with all affected parties, including trustees, rating agencies, investors, warehouse lenders and credit enhancement providers. Because of our prominent position in the CMBS market, we have taken a leading role in connection with distressed CRE CDOs, with a particular emphasis on troubled real estate asset workouts.
We work with derivative and structured credit product market participants for development, structuring, negotiation and documentation of master netting and set-off agreements, swap participations, contingent interest rate swaps, contingent loan only credit default swaps and contingent credit default swaps that include derivative termination obligations as deliverable obligations The development and implementation of structures that permit CDOs, CLOs and similar vehicles to workout the securities issued by them and to permit the modification or termination of credit default swaps, all in a tax-efficient manner and the termination rights and strategies in respect of trading contracts with insolvent counterparties.
With Structured Investment Vehicles (SIVs) facing ongoing operating challenges, including higher funding costs, constrained liquidity, and depressed valuations, we mitigate a variety of market risks, protect creditors, and provide for an orderly unwinding of the commercial paper programs in which many SIVs have invested. During the current liquidity crisis, we have restructured numerous commercial paper conduits in order to allow them to function and operate in this extremely difficult environment, and we have negotiated and worked closely with rating agencies, enhancement providers, and other service providers involved in these restructurings.