Eagle Hospitality Avoids Foreclosure, Reaches Compromise With Blackstone

The Wall Street Journal reported this week that Eagle Hospitality Trust and Blackstone Group struck a deal to avoid foreclosure on 13 upscale U.S. hotels.  Eagle owns the 13 properties, which include the Cincinnati Landmark Marriott, and Blackstone holds the debt. Rather than proceed with foreclosure, Blackstone has agreed to accept an undisclosed amount as […]

Battle Over Major U.S. Luxury Resorts

An article in the Wall Street Journal this week highlights a developing battle for ownership of four giant U.S. luxury resorts. Singapore’s sovereign-wealth fund, a creditor in the bankruptcy case involving the four resorts, is forcing an auction of the properties by year-end — against the wishes of the current owners: a group led by […]

New Strategy for Underwater Mortgages Would Use Government Powers of Eminent Domain

The Wall Street Journal reports on a new approach to refinancing underwater home mortgage loans that involves municipalities using their powers of eminent domain to seize mortgages from lenders. The loans would then be refinanced through a federal loan program. The proposal, being pitched to municipalities by advisory firm Mortgage Resolution Partners, could generate returns […]

Triggering the Buy-Sell: Considerations for invoking a buy-sell provision in a partnership dispute (Part 2)

This is Part 2 of a two-part series on triggering a buy-sell. This week we will consider three more factors to weigh when invoking a buy-sell in a partnership dispute. 1. Waterfall/Distributions As discussed in last week’s installment, the calculation of the purchase price for the partnership interests under the buy-sell often involves starting with […]

Triggering the Buy-Sell: Considerations for invoking a buy-sell provision in a partnership dispute (Part 1)

In a down market, partnership disputes tend to rear their heads with increasing frequency, and many partners begin looking for a way out[1]. One place they often turn is the buy-sell mechanism. But before pulling the trigger on a buy-sell, there are several things to consider in order to prepare for how the circumstances might […]

Special Servicers Face Criticism for Lean Results From Real Estate Workouts

According to a recent article in the Wall Street Journal, special servicers are being criticized by investors and analysts for cutting bad deals with borrowers and failing to disclose conflicts. The article cites a report from Deutsche Bank analyst Harris Trifon as the latest critique, which describes 12 large commercial real estate loan workouts that […]

Short Sales Outnumber Foreclosures?

A recent article on Bloomberg.com reports that the number of short sales of homes in the U.S. surpassed the number of foreclosure deals for the first time in January according to information from Lender Processing Services (LPS). However, the report warrants going beyond the headline. An article appearing on the Wall Street Journal's Developments blog […]

Considerations for Foreclosing Mezzanine Lenders – Part 2

Here, we continue our discussion of considerations for foreclosing mezzanine lenders. Type of Foreclosure In preparing to exercise remedies under the mezzanine loan documents, a lender first must determine which type of enforcement action best suits the circumstances. Mortgage vs. mezzanine foreclosure Lenders holding both mortgage and mezzanine loans on the same property will need […]