Print Page

Multiple Hotel Portfolio

In 2020, represented multi-billion dollar financial institution in negotiating a forbearance and extension of a defaulted mezzanine loan secured by equity interests in eleven hotels. At the same time, and on a dual track, coordinated a Uniform Commercial Code (“UCC”) Article 9 sale of the underlying collateral. Our role included assisting the client in the proper marketing of the asset under the requirements of UCC Article 9, framing the Terms of Sale, notice and advertising compliance, and structuring the UCC sale process to comply with current developing case law during the Covid crisis. The UCC sale resulted in a purchaser being identified for the loan. We then, within a period of less than a week, (i) negotiated and closed the sale of the defaulted loan; and (ii) closed on the forbearance/extension of the loan on behalf of the loan purchaser.