Debt Workout and Restructuring

Eyzenberg & Company offers highly sophisticated advisory services for CMBS loan workout and restructuring situations. Our first-hand insider knowledge and understanding of the CMBS workout framework will enable us to help clients navigate to the most successful outcome possible.

Historically, assets go into workout and/or restructuring for various reasons. Whether due to technical default, overleveraging, underperformance, or simply poor timing leading to term default, each scenario greatly affects the remediation strategy. Today’s unprecedented market environment has led many owners to become unable to meet their debt service requirements for the time being. Our team has run workout groups for the largest lenders and special servicers in the industry, and is positioned to enable clients to reach optimal results.

Our Services

CMBS workouts are unique with many factors coming into play that are not usually seen with balance sheet lenders. We help clients understand and factor in:
  • The implications of the pooling and servicing agreement
  • Controlling class bond holders’ interest and influence on the Special Servicer
  • B-piece and Special Servicer’s decision trees
  • The tax implications of various alternatives such as Deed in Lieu
  • The risks and rewards of A/B note bifurcation, short sales, discounted payoffs, note purchases and extensions
One of our unique differentiators is our ability to simultaneously arrange debt and/or equity capital to consummate a resolution, providing a seamless process from start to finish.

Our Experience

The debt restructuring practice is headed by Robert Ginsberg, a highly seasoned workout professional who has resolved billions of dollars in specially serviced loans throughout his career, as well as having resolved a number of his own distressed real estate projects. During the early 1990s, Mr. Ginsberg was a DIP and turnaround lender with CIT Group’s bankruptcy restructuring department and co-headed Metallgesellschaft’s distressed debt trading group. As a developer and real estate investor, he then faced and resolved some of his own distressed situations in 2009 and 2010. Between 2010 and 2014, Mr. Ginsberg acted as head of Torchlight Loan Services’ large loan workout group, during which time he resolved more than $3 billion of specially serviced loans.