Troubled borrower financing
Occasionally, a business’ financial outlook may take an unfortunate turn. A lender places the business’ loan in special asset or troubled asset status, or instructs them to find a new source of funds. Tax obligations are coming due, and capital is not available. There may be demands to sell assets and pay off loans.
These difficult situations can threaten business livelihood and often carry immense pressure for fast, thorough resolutions.
Porter Wright works with businesses and commercial real estate owners to turn around their financial positions. We have the experience to negotiate lender forbearance and standstill agreements, providing clients the breathing room necessary to work through their financial situations and find replacement lending.
As a full-service law firm, we also resolve complex issues affecting a business’ viability, such as pursuing mergers, acquisitions and other types of corporate restructuring, addressing the tax implications from workouts and debt relief, resolving labor issues that may result from renegotiating employment and collective bargaining agreements, and filing or resolving litigation. Porter Wright draws on its experience in transactional work and creditors' rights, as well as lender contacts, to help identify, negotiate and close on alternative financing for borrowers, including:
- Mezzanine debt
- SBA loans
- HUD loans
- Insurance company loans
- Short-term loans (less than 18 months) and “bridge” financing
- Asset-based lending
- Loan and scrips/warrants/options/DECS
- Private equity
- Loan modifications
- Structured finance