# 011640

Cramdowns in Real Estate Bankruptcies and Protecting the Guarantor: A Guide to Commercial Real Estate Loan Reductions through Bankruptcy

Many commercial real estate loans will mature over the next five years, with a good portion of them due in 2012. As the “extend and pretend” era wanes, more borrowers are facing the prospect of default. Increasingly, instead of consenting to foreclosure, they are considering a Chapter 11 bankruptcy and a cramdown to effectively restructure the loan.

LACBA members David B. Shemano, partner in the bankruptcy and litigation boutique Peitzman, Weg & Kempinsky LLP, and John N. Tedford IV, partner at Danning, Gill, Diamond & Kollitz, LLP, will discuss how to push through all the hurdles to successfully effectuate a cramdown in Chapter 11. Issues covered include:

• Fair market value

• Interest rate reductions

• Impaired class

• Terms and covenants of the cramdown note

• Absolute priority rule

• New value

• Protecting the guarantor

• Treatment of deficiency claims

Cramdowns are widely known but not well understood. Join us and learn what you need to know in our hour-long lunchtime program.