With the fallout in today's credit markets, it is essential to have legal counsel experienced in the various disciplines needed to deal effectively with both the possibility and reality of non-performing real property loans and troubled real estate borrowers. Cadwalader brings together attorneys in the areas of finance, real estate, bankruptcy, litigation and tax to provide complete representation in all facets of real estate workouts, foreclosures and bankruptcies. Members of these practice groups have represented a wide variety of clients, including both lenders and borrowers, and have dealt with substantial properties in workout, foreclosure and bankruptcy situations, and are familiar with the unique concerns of large financial institutions, developers and government agencies alike.
Bank Loans: Together, Cadwalader's Finance and Financial Restructuring lawyers represent many of the largest international and domestic investment and commercial banks and banking organizations in their capacity as administrative agents, agents or lenders in troubled leveraged finance transactions, in super-priority and other in- and out-of-court syndicated lending transactions, and in chapter 11 debtor-in-possession financings. Adept at interpreting and applying the provisions of the Uniform Commercial Code, the Bankruptcy Code, other applicable substantive laws, and regulated and unregulated industry standards, our attorneys efficiently structure workout transactions and negotiate and draft critical documentation, including complex operating and financial covenants, for our clients' protection. With national reputations, these attorneys are well-known to financial market participants and courts around the country, having achieved favorable results in many complex and significant workouts and reorganizations. Their experience extends to implementing and monitoring these restructuring arrangements throughout all stages – from origination to collateral recovery or exit financing.
The team has represented, among others, Barclays Capital, as Agent, under the First Lien Credit Agreement to LandSource Communities Development LLC, the California-based developer of residential, industrial, and commercial real estate; Lehman Commercial Paper Inc., as Administrative Agent, under the First Lien Credit Agreement to LBREP/L-Suncal Master I LLC, the California developer of residential real estate; JPMorgan Chase Bank, N.A., as Administrative Agent, in the massive international Centro Properties restructuring involving an extensive portfolio of shopping centers across Australia, New Zealand and the United States; and JPMorgan Chase Bank, N.A. in connection with the Stations Casino chapter 11 cases as one of two mortgage lenders and in its participation with Fertitta Gaming as the successful bidder on certain Stations Casino properties.
Mortgage Loans: On behalf of major institutional clients, our real estate partners, supported by an integrated team from other disciplines, have negotiated the restructuring and advised on the foreclosure of both permanent loans and construction loans, including those in which the construction of the project was incomplete. These workouts have included office buildings, hotels, shopping centers, industrial facilities, golf courses, apartment buildings, and co-op and condominium complexes. For example, we represented the special servicer in connection with the workout (following the events of 9/11) of the $563 million mortgage loan made by a major commercial mortgage company secured by Buildings 1, 2, 4 and 5 of the World Trade Center, New York. We also advised a major insurance company on the workout and restructuring of mortgage loans regarding One State Street Plaza and One Seaport Plaza, New York City, and represented a major financial services company on the joint venture dispute and workout involving the General Motors building in midtown Manhattan. In addition, we represented a major financial institution and various developers in joint ventures that took title to distressed assets, including numerous Manhattan office buildings and a regional shopping center in upstate New York. Cadwalader attorneys also have substantial experience in workouts involving real estate investment trusts and publicly traded real estate limited partnerships.
Mezzanine Loans: In recent years, with the significant increase in mezzanine loan financings related to real property (in many cases, funded simultaneously with mortgage loan financings), Cadwalader attorneys have had numerous opportunities to represent various investment funds and financial institutions in the workout and enforcement of troubled mezzanine loans. Cadwalader's attorneys' extensive experience in the origination of mezzanine loan financings, in many cases with numerous levels of mezzanine sub-debt and complicated intercreditor arrangements among the mortgage lender and various mezzanine lenders, makes Cadwalader uniquely qualified to analyze and evaluate the rights and remedies, and related risks, facing mezzanine lenders with troubled loans. For example, we represented the first mezzanine lender in connection with the workout of an approximately $800 million loan to a Harry Macklowe entity. We also represented the mortgage and mezzanine borrowers in connection with a mortgage and mezzanine financing to facilitate the acquisition of more than 30 acres of land and 6 hotels and casinos in downtown Las Vegas, and in connection with the subsequent alleged default and attempted foreclosure of the mezzanine loan, we negotiated a settlement that involved the purchase of the mezzanine loan. In addition, we are representing the Japanese branch of a major U.S. financial institution in the proposed foreclosure of shares of certain U.S. subsidiaries of a group of affiliated Japanese companies securing a ¥119.5 billion loan to the Japanese companies.
Bankruptcies: The members of Cadwalader's Financial Restructuring Department are necessarily an integral part of Cadwalader's legal team in structuring real estate workouts. Among other major cases, our attorneys represented two major investment banks who were each significant repurchase agreement counterparties and loan purchasers in the New Century bankruptcy case; an investment bank that was a major repurchase agreement counterparty in the MLN bankruptcy, both in that bank's capacity as a creditor and a member of the creditors' committee; Barclays Capital, as Agent, under First Lien Credit Agreement to LandSource Communities Development LLC; and JPMorgan Chase Bank, N.A. in connection with the Stations Casino chapter 11 cases as one of two mortgage lenders and in its capacity in bidding on certain Stations Casino properties. In addition, we represented two investment banks in the bankruptcy of People's Choice, a sub-prime lender, and Lodgian, Inc., one of the nation's largest owners and operators of mid-scale hotels at that time, in its chapter 11 cases. Cadwalader's Financial Restructuring Department is also expert on issues involving the single-asset special purpose vehicles that are commonly formed in CMBS mortgage and mezzanine financings, including issues related to potential bankruptcies of such vehicles.