At Selzer Gurvitch, we understand the complexities and challenges that lenders face when dealing with distressed assets and underperforming or non-performing secured and unsecured loans. Our attorneys have gained valuable and extensive experience through various economic cycles and will provide you with proactive, comprehensive and practical loss mitigation solutions to navigate through these intricate situations. We will work as your trusted counselors to identify strategies to maximize returns and minimize losses.

Our services include:

• Initial Guidance. Our team excels in crafting demand letters, default notices, and reservation of rights letters. Our team is adept at identifying potential lender liability claims and advising on proactive measures, including, but not limited to, preparation of pre-negotiation agreements, which can be critical to lenders by preserving the status quo during negotiations, permitting a lender to communicate with the borrower concerning the workout strategy without prejudicing a lender’s ability to enforce the loan documents, and minimizing the risk of lender liability claims.
• Due Diligence. We assist with a lender’s due diligence efforts, reviewing loan, title, corporate and financial documents, evaluating continuing obligations for disbursements and reserve requirements, and identifying and assessing third-party rights, including, priming liens and judgments, and secured and unsecured party rights.
• Third-Party Creditors and Liens. We evaluate strategies to navigate cross-default and cross-collateralization agreements and multiple-lender arrangements, including participation, co-lender, intercreditor and subordination agreements.
• Dealing with All Types of Parties. We strategize with you on how to best handle challenging and uncooperative parties, including participating lenders or co-lenders, borrowers, guarantors and investors in borrowers, each of whom can complicate the workout process.
• Loss Mitigation. We develop effective workout strategies tailored to the unique circumstances of a particular distressed asset or the underperforming or non-performing secured or unsecured loan. Our team excels in crafting and negotiating forbearance arrangements and loan modifications to address covenant and payment breaches, to accommodate changes in the financial circumstances of borrowers and/or the marketplace, and to meet the regulatory needs of lenders.
• Collateral Preservation Strategies. We offer guidance on preserving collateral value and minimizing losses for the lender through strategic, realistic, and sound approaches.
• Foreclosure and Deeds-in-Lieu. We offer guidance and strategies in anticipation of foreclosure proceedings and in implementing consensual deed-in-lieu of foreclosures on real estate-secured assets or business assets under the Uniform Commercial Code.
• Bankruptcy Guidance. We provide valuable insights and strategies to help lenders understand and navigate the bankruptcy process, including defending lift stay actions.
• Guidance With Respect to Income Tax Consequences. Given the oftentimes severe income tax consequences to borrowers associated with discharge of indebtedness income, recapture of negative capital account balances and depreciation, our ability to provide advice and structures for minimizing these consequences can facilitate the parties reaching an acceptable resolution.

Our dedicated team of experienced legal professionals, with substantial experience on both the lender and borrower side, is available to assist you and is committed to delivering tailored solutions to meet your specific needs related to distressed assets and underperforming or non-performing loans. We look forward to discussing how we can assist you further.