We possess decades of experience protecting and advancing the interests of lenders, secured and unsecured creditors, creditor committees, and potential asset purchasers.
We understand that no one benefits from a drawn out default or insolvency situation. We work quickly and efficiently to help creditors navigate distress situations involving borrowers, customers, suppliers/service providers, and other parties, either in or out of a court process. Losses are suffered by failure to take action, and we treat clients’ interests as our own. We deliver prompt and thorough strategic advice and take a creative approach to enhance or preserve rights related to collection and collateral or other creditors’ rights issues that may arise. Even where longer court processes are unavoidable, we strategize with our clients to protect their interests and optimize outcomes.
Our Valued Creditor Clients
Our experience in representing different types of creditors, including financial institutions, such as banks, special servicers of securitized mortgage pools, private lenders, life insurance companies, and other creditor entities ensures that we are attuned to their specific needs and requirements. This includes advising commercial real estate lenders on how to best position themselves to maximize recovery when dealing with financially strapped borrowers and purchasers, filing creditor claims, addressing fraudulent transfer and conveyance claims, and asserting rights under equipment financing contracts, including pursuing reclamation claims.
Commercial Loan Defaults
Our team has extensive experience addressing and resolving loan defaults for all types of lenders and properties. Whether assisting in loan modifications to best position a lender for potential future defaults, forbearance agreements, state and federal court litigation, or bankruptcy and appellate work, our clients seek our services. Our experience enables us to address a range of issues concerning unique non-performing loans and troubled borrowers, and to resolve distressed real estate loans as well as non-performing asset-based and unsecured loans. Our experience also includes distressed sales and auctions in and out of bankruptcy, UCC sales, deeds-in-lieu of foreclosure, and discounted payoff arrangements.
Foreclosures
When foreclosure is necessary, we are experienced in handling those matters throughout our firm’s footprint, and we are knowledgeable about each state’s specific laws and rules governing those proceedings. Our matters have ranged from simple foreclosures to more complex proceedings necessitating the appointment of rent or sale receivers, securing collateral, and responding to lender liability counterclaims and defenses—such as alleged violations of unfair trade practices laws, breach of contract and the accompanying duty of good faith and fair dealing, breach of fiduciary duty, and claims of priority. We handle foreclosures on loans secured by all kinds of property types, including shopping malls, office complexes, hotels, and multifamily buildings.
Receiverships
Appointment of a rent receiver is critical in foreclosure actions to help preserve and protect collateral, maintain the status quo, or remediate property conditions and advance collection of rents related to the underlying defaulted loan and prevent waste by the borrower. McCarter has extensive experience representing appointed receivers and lenders in seeking receivership appointments in the commercial real estate foreclosure context. We understand the critical steps an appointed receiver needs to take immediately upon appointment, including capturing rents, securing and insuring the property, and addressing violations. We also deal with complex issues discovered after appointment, including labor issues, environmental issues, tax issues, and property sales matters.
Other Asset Recovery and Contractual Rights
We represent creditors in various industries in their efforts to collect contractual sums owed by debtors or to assert contractual obligations owed by debtors. We advise clients on how to protect their rights before a distressed party becomes a debtor, including counseling creditors concerning their rights and potential liabilities related to secured and unsecured debt and the priority of their liens in collateral shared with other creditors. We help creditors enforce their claims in state law receivership proceedings initiated under state or common law or in assignments for the benefit of creditors matters. Whether securing collateral assets of an insolvent company, collecting accounts receivable from customers, or recovering assets owed by a supplier, we have extensive experience finding creative solutions to advance creditors’ rights and help them achieve their business objectives related to a financially troubled or insolvent party.
