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Practice Overview

Loan Restructuring & Distressed Real Estate

In the middle of difficulty lies opportunity”. Albert Einstein

The COVID-19 pandemic has created immediate hardship on borrowers and lenders alike. Olshan’s Loan Restructuring & Distressed Real Estate Group provides a multi-disciplinary approach to solving complex issues.  Our team of highly skilled bankruptcy, real estate, tax and litigation lawyers routinely handle a wide array of distressed real estate matters.

Our lawyers provide counsel and bring innovative and bespoke solutions to a broad range of clients including borrowers, investors, lenders, developers, landlords and tenants.

Our loan restructuring capabilities include:

Workout and Restructuring

In real estate workouts we help our clients implement a wide array of solutions for their specific needs.  We assist both our borrower and lender clients with all aspects of loan workouts, discounted pay-offs, A-Note/ B-Note restructurings, forbearances, loan modifications, and, if needed, insolvency planning.  With experience in direct lending, CMBS, construction loan, second lien, and mezzanine loan restructurings, our Loan Restructuring & Distressed Real Estate Group has the experience to handle any loan restructuring and distressed real estate matter.

We provide counsel in all types of real estate matters in foreclosure, and bankruptcy, including single asset real estate case issues, valuation of collateral, assumption or rejection of leases, section 363 sales, as well as restructuring loans through a confirmed chapter 11 plan of reorganization.


Our Loan Restructuring & Distressed Real Estate Group regularly serves as counsel to borrowers with CMBS loans.  With extensive experience with CMBS loans, non-recourse carve out guarantees, Pooling and Service Agreements, and related agreements, our team can quickly and effectively negotiate with Special Servicers, Controlling Class holders, and other parties and understand the complexities of CMBS workouts.

  • Representing VS 125, LLC, in multi-faceted commercial foreclosure dispute involving senior and mezzanine loans in New York State Supreme Court concerning luxury residential real estate development located at 125 Greenwich Street in Manhattan.
  • Represented New Jersey Shopping Center (borrower) in successful restructuring and refinancing of a defaulted $50 million CMBS loan, which was restructured into an A-Note/ B-Note loan structure with rescue financing in the midst of a scheduled foreclosure sale.
  • Represented Long Island Shopping Center (borrower) in successful restructuring with lender in the context of foreclosure proceedings with lender.  Successfully defeated the appointment of a receiver and imposition of personal liability under a non-recourse carve out guaranty.  As part of the restructuring, client obtained discounted pay off and refinanced with new lender.
  • Represented owner/operator of a Louisville, Kentucky major office building in splitting a senior mortgage into an A Note and B Note with a pref equity component after the loss of a credit tenant leasing almost half of the building, including the sale of the split notes to a new lender to allow for a refinance of existing debt, plus TI, LC and reserves.
  • Represented new investors in restructuring distressed LLC owning two major Chicago, Illinois office buildings by allowing existing members to remain in the LLC for back end profits interest thus allowing the existing owners not to suffer any adverse tax consequences and providing all tax benefits, including full depreciation, to new investors who infused fresh capital and obtained new financing.   
  • Represented Upper East Side Hotel (hotel owner) in contentious loan workout with lender and resolution of complex disputes with Union and the hotel franchisor. The three party resolution ultimately led to successful turnaround and sale of the hotel for a price with equity receiving significant return under restructured loan.
  • Represented Southern Connecticut developer of town homes (borrower) in loan restructuring and chapter 11 case with successful discounted payoff.  Successfully removed all personal guarantees in context of resolved section 363 sale of assets in the bankruptcy case.
  • Represent Surrey Realty Associates, LLC, the ground lessor, in the bankruptcy proceedings of premier Upper East Side NYC hotel, The Surrey Hotel.
  • Represent Perry Ellis International, Inc. as purchaser of real estate assets in the chapter 11 case of Fred’s Inc.
  • Represent purchaser of Nashville, TN commercial building from the bankruptcy estate of Gibson Brands, Inc.
  • Represented purchaser of 100-104 Fifth Avenue from the bankruptcy estate of Rock US Holdings Inc.
  • Represent investor/purchaser of defaulted mortgage loan in connection with the ultimate acquisition out of bankruptcy of a partially built mixed-use building in Queens, New York.
  • Represented Team Greene LLC, the senior secured lender by assignment of senior mortgage loan, in connection with the acquisition out of bankruptcy of a 92,000 s.f. mix-use residential and commercial building in Brooklyn, New York.
  • Represented purchaser of a $60 million real estate loan against hotel debtor in bankruptcy and foreclosure proceedings.  Client ultimately became owner and successfully turned around the hotel.
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