Converting Debt to Equity: An Alternative to Modification or Extension of Loans

Historically, lenders have been unwilling to go into business with their borrowers, preferring to observe a rigid separation between debtor and creditor. However, if an office property can be repositioned for another use, there is a path between extending the term of a loan and hoping for the best, and taking the property back and realizing a catastrophic loss.

9 minute read July 01, 2023 at 12:11 AM
By
Dennis M. Sughrue and Daniel A. Devine
Converting Debt to Equity: An Alternative to Modification or Extension of Loans

The state of the office sector is grim. The end of the era of cheap money, coupled with a shift to remote work, has resulted in widespread value destruction and mounting distress.

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