United States:
Valuation Fights And Real Estate Trouble Are On The Horizon For Corporate Bankruptcy
19 November 2020
Morrison & Foerster LLP
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Jennifer Marines spoke to Reuters Legal for an article covering
how the COVID-19 pandemic will continue to push companies in many
industries into bankruptcy in the coming months.
In the real estate industry, the current trend of lenders
accommodating debtors by extending deadlines applies to landlords
as well as tenants. But eventually, banks will find themselves
forced to accept their losses, according to Jennifer.
“When that happens, we are going to see a real shift in
the banks' tolerance level,” Jennifer said. “It
will lead to increased lender oversight of landlord-tenant workouts
and lease negotiations, which will inevitably result in more
Chapter 11 filings by the end of this year or the first quarter of
next year.”
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Because of the generality of this update, the information
provided herein may not be applicable in all situations and should
not be acted upon without specific legal advice based on particular
situations.
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