At Selzer Gurvitch, we recognize the legal, financial and practical complexities that arise when addressing distressed assets and underperforming or non-performing secured and unsecured loans. Our attorneys bring extensive, real-world experience representing both lenders and borrowers across multiple economic cycles, providing a well-rounded perspective that informs strategic, pragmatic and results-driven solutions. This dual-sided experience enables us to anticipate challenges, align interests where possible and develop effective strategies to maximize recoveries while minimizing risk and loss. We serve as trusted advisors, guiding clients through each stage of the workout and resolution process with clarity and precision.

Our services include:

• Initial Guidance. We work with lenders and borrowers from the outset to develop initial strategy and prepare and negotiate demand letters, default notices and reservation of rights letters. We simultaneously identify potential lender liability risks and advise on proactive measures, including pre-negotiation agreements that preserve rights and facilitate productive workout discussions.
• Due Diligence. We support comprehensive due diligence efforts, including review of loan, title, corporate and financial documentation; evaluation of funding obligations and reserves; and assessment of third-party rights, including liens, judgments and competing claims.
• Third-Party Creditors and Liens. We develop strategies to address cross-default and cross-collateralization issues, as well as multi-lender structures, including participation, co-lender, intercreditor and subordination arrangements.
• Dealing with All Types of Parties. Drawing on our experience on both sides of the table, we advise on navigating complex dynamics involving co-lenders, borrowers, guarantors and equity stakeholders, including managing contentious or uncooperative parties.
• Loss Mitigation. We design and negotiate tailored workout strategies, including forbearance agreements and loan modifications, to address covenant defaults, payment issues, evolving market conditions and regulatory considerations.
• Collateral Preservation Strategies. We provide practical guidance to preserve and enhance collateral value while mitigating exposure and loss.
• Foreclosure and Deeds-in-Lieu. We advise on and implement foreclosure strategies and consensual deed-in-lieu transactions involving real estate and personal property collateral under applicable law.
• Bankruptcy Guidance. We counsel clients through bankruptcy proceedings, including stay relief and related strategic considerations, to protect and advance their interests.
• Guidance With Respect to Income Tax Consequences. We advise on structuring solutions that address potential tax implications – such as discharge of indebtedness income and related issues – to facilitate viable, mutually acceptable resolutions.
• Note Sale Structuring. We advise lenders on structuring and executing note sales, including marketing strategy, bidder diligence, purchase and sale agreement negotiation.

Our team’s depth of experience on both the lender and borrower side distinguishes our approach, allowing us to deliver balanced, informed and effective counsel in even the most complex distressed asset scenarios.