Commercial Loan Workout

The current state of commercial loan workouts in the US is marked by increasing challenges, particularly in the commercial real estate (CRE) sector. High interest rates and economic uncertainties have led to a rise in distressed CRE loans, with many borrowers struggling to refinance. This has resulted in a surge in loan modifications, foreclosures, and bankruptcy filings. The office sector, in particular, has been hit hard as remote work trends persist, making it difficult for property owners to cover higher interest costs.

Changes to the bankruptcy code in recent years have had a significant impact on commercial bankruptcies and restructurings. The amendments have introduced new thresholds and procedures, making it easier for businesses to navigate the bankruptcy process. However, these changes have also led to an increase in bankruptcy filings, as companies seek to manage their debt under the new regulations. The evolving legal landscape requires businesses to stay informed and adapt their strategies to effectively address financial distress. We can help manage your workout portfolio.