Commercial Restructuring and Workouts

  • Schenck Price’s Commercial Restructuring and Workouts Practice Group consists of attorneys with backgrounds in a variety of disciplines, who have worked with and in the financial industry for decades.  Some of our attorneys have served as in-house counsel at major banks and financial institutions; all have vast experience serving as outside counsel.  In addition, our lawyers have experience working with governmental agencies, including in-house legal positions with the Federal Deposit Insurance Corporation (FDIC).  Our clients include regional, national and international banks and other lenders. 

    Our collective, wide-ranging knowledge allows us to assess a matter and offer an evaluation of a particular situation, including evaluating lien positions, reviewing potential environmental issues, analyzing loan documents and the respective rights of parties, inter-creditor arrangements, claims against carriers or other insurance providers or professionals, set-off rights, significant debts owed to other creditors, additional guarantors, as well as an evaluation of defenses including lender liability claims.

    Schenck Price has significant experience representing institutions regarding the disposition of troubled loans and/or the underlying assets.  We have represented commercial lending institutions in various problem loan transactions for real estate, asset-based and commercial and industrial credit facilities.  Representation has included suits on notes, foreclosure proceedings and bankruptcy proceedings.

    Our attorneys have represented commercial lending institutions in restructuring their debt and workout situations in all types of transactions.  Transactions have involved consolidation of and/or restructure of debt secured by corporate assets, mortgages and various personal and corporate guarantees.  Our representations have involved foreclosure sales, sales of assets and sales of assets conducted under the auspices of the United States Bankruptcy Court. 

    With a unique and significant background in matters involving the New Jersey Economic Development Authority (NJEDA) and the United States Small Business Administration (SBA), we bring both practical and legal knowledge as to how a restructuring or other ancillary matters may unfold.

    Schenck Price has been involved in numerous transactions and closings, particularly SBA 7(a) and 504 closings. In addition, we have prepared numerous repurchase packages for lenders seeking quarterly payments on defaulted SBA 7(a) loans.

    The Group adopts a team approach to each transaction.  We work with our colleagues in the Corporate, Commercial Litigation, Real Estate, Environmental and Tax Planning practices to offer appropriate counsel.  We understand the need to be cost-sensitive in our representation.

    Services to Clients

    Commercial Restructuring and Workouts

    • Litigation representing financial institutions as plaintiff in State and Federal Courts
    • Defense of financial institutions in litigation
    • Loan restructuring and workouts
    • Negotiating forbearance agreements
    • Deeds in lieu of foreclosure
    • Additions or reaffirmation of guarantees and restructuring transactions
    • Uniform Commercial Code issues
    • Insurance and general litigation
    • Civil trial practice


    • Commercial transactions
    • Commercial banking and leasing
    • Commercial loans and credit-enhanced transactions
    • Commercial real estate loans
    • Land use for banks
    • Construction loans
    • Lines of credit
    • Letters of credit
    • Loan closings
    • Condominium financing
    • Tax-exempt financings
    • Institutional loans
    • Pool loan transactions
    • Mortgage and acquisition loans
    • NJEDA direct loans and tax exempt bonds
    • Privately placed debt and various types of publicly issued bonds
    • Compliance
    • Financial regulatory compliance
    • Environmental compliance and due diligence in transactions
    • Counseling financial institutions and borrowers in all aspects of government guaranteed loans
    • Local Development Financing Fund (LDFF) transactions
    • Complex documentation review
    • Advisement regarding potential rights and remedies
    • Inter-creditor agreements
    • Leasing matters
    • Asset purchases
    • Land use
    • Franchise matters
    • Regulatory matters
    • Financings and general corporate matters, including entity formations and contract reviews
    • Programs involving the United States SBA including 7(a) and 504 finance transactions, and USDA B & l loans, including interpretations involving SBA rules and regulations
    • SBA repurchases
    • SBA 504 loans
    • Administrative law controversies and disputes
    • Real estate and business acquisition and disposition
    • Negotiating and structuring real estate and corporate transactions
    • Acted as counsel to a regional bank in restructuring a manufacturing company’s approximately $20 million of debt and collateral
    • Served as borrower’s counsel to a pubicly traded pharmaceutical company regarding two outstanding public bond issues currently in default
    • Represented numerous banks and credit unions in closing approximately 300 loans annually, with a value of over $750 million
    • Represented a real estate entity in a $19 million real estate disposition, $12 million acquisition and various loan purchases relating to different real estate property types
    • Represented numerous banks and credit unions in various loan workouts and restructurings, including multi-credit facilities to related borrowers and guarantors