Posted
by

Restaurant companies have been devastated by the COVID-19 pandemic. The National Restaurant Association estimates that the industry has already lost more than 3 million jobs and $25 billion in sales, and there are many more dark days ahead. In “Paycheck Protection Program Leaves Restaurant Industry With Questions,” partner Anna M. Graves discusses the special provisions that the the sweeping $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act includes to assist restaurant companies and their employees.

Posted
by

With an unprecedented number of commercial real estate tenants not paying rent and potentially defaulting under their leases, many landlords and tenants may soon be entering into forbearance agreements that defer payment of rent and other financial obligations. In “Navigating Bankruptcy Exposure for Landlords Arising from Anticipated Lease Terminations During COVID-19,” colleagues Patrick J. Potter, Christian A. Buerger and Dania Slim address how lease terminations may result in fraudulent transfer claims.

Posted
by

The coronavirus pandemic has been credited with improved air and water quality as America shelters in place, reducing its emission and discharge footprint. This unanticipated benefit, however, overlooks the numerous environmental problems that Californians were addressing prior to the advent of the pandemic. In “California’s Stay-at-Home Orders: Implications for Environmental Contractors,” colleagues Eric Moorman and Mark E. Elliott discuss that the exceptions outlined in state and local directives likely encompass the investigatory and remedial activities performed by environmental contractors.

Posted
by

In the wake of the COVID-19 pandemic, the Supreme Court of Texas along with many Texas counties have issued moratoriums on evictions and foreclosures, the applicability of which remains varied and depends on local orders. In “Texas Restricts Evictions Due to COVID-19: Landlord Considerations,” colleagues Hannah Hollingsworth and Adam J. Weaver address that even though evictions are currently on hold, landlords should carefully review their leases and continue to fulfill their obligations thereunder in order to protect their rights once the courts have reopened.

Posted
by

The Federal government issued an advisory list of essential critical workers, including workers doing certain types of construction, but deferred to states and local governments to implement any orders. In “Construction During COVID-19: Is It Essential?,” colleagues Laura Bourgeois LoBue, Matthew D. Stockwell, and Elizabeth J. Dye address that there is no “one-size-fits-all” approach to how governments are handling construction.

Posted
by

In the wake of the COVID-19 pandemic, governments across the U.S. have issued moratoriums on evictions and foreclosures for residential and commercial properties and other restrictions on available remedies. In “National Landscape of COVID-19 Eviction and Foreclosure Moratoriums Continues to Shift,” colleagues Carmela D. Nicholas and Jeff Clare discuss how the limitations vary on whom they protect and what remedies are restricted, but they do not constitute forgiveness of the underlying obligations.

Posted
by

The insurance industry responded to the emergency of the COVID-19 pandemic with preemptive press statements that property insurance policies would provide no coverage—even before policyholders submitted any claims. In “Many Commercial Property Insurance Policies Provide Coverage for COVID-19 Exposures,” colleagues Robert L. Wallan, David F. Klein and Tamara D. Bruno discuss that the insurance industry’s generic arguments that there is no coverage for the COVID-19 pandemic should not be accepted at face value, as coverage may be available depending on specific policy terms and individualized facts.

Posted
by

The Department of Homeland Security has outlined 16 critical infrastructure sectors which represent the types of businesses that can remain operational during the COVID-19 pandemic. However, each state—in some cases, local governments—can designate what qualifies as “essential.” Businesses should be mindful of the government regulations and potential penalties for noncompliance. We recommend working with legal counsel to understand your state’s definition of an “Essential Business” and the permissible exemptions from stay-at-home orders that may exist.

Outlined below (and available here as a PDF) are practical tips to follow to ensure you are complying with all applicable orders.

Continue Reading ›

Posted
by

In many cases, borrowers and lenders are working together to weather this crisis. A forbearance agreement is often the first step—after a pre-negotiation agreement is entered into. In “Distressed Real Estate During the Coronavirus Pandemic: Tips for Negotiating Forbearance Agreements,” colleague Caroline A. Harcourt  discusses how the coronavirus pandemic, stay-at-home orders and social distancing have put unprecedented strains on borrowers—hotels are closed or barely operational, retail properties are shuttered, tenants are not paying rents (and, in many jurisdictions, shielded from eviction)—yet owners must continue to meet their debt service payment (and other) obligations and fund their required reserves.

Posted
by

Real Assets are supposed to generate cash, yet in many sectors this is no longer the case. Please join us on Monday April 13, 2020, at 12:30pm ET / 9:30 am PT for the first in a webinar series addressing some of the most pressing challenges currently affecting investors, lenders and owners in three key categories of Real Assets. Monday’s webinar topic will be Real Estate: Financing During the COVID-19 Pandemic.  This 60-minute conversations will cover:

  • Current state of affairs
  • Issues for Lenders and Borrowers in preparing for and negotiating workouts, including the pre-negotiation agreements and restructuring/forbearance agreements (from each perspective)
  • Non-Recourse Carve-Out considerations
  • Considerations in CMBS/real estate capital markets context (i.e. margin calls; role of special servicer)
  • Issues/opportunities within the debt stack – the role of intercreditor agreements
  • Creditor Rights issues – insolvency and bankruptcy considerations in forbearance/loan modifications

Speakers:


Caroline Harcourt
Partner, Real Estate

Eric Kremer
Partner, Real Estate

Patrick Potter
Partner, Insolvency & Restructuring

Andrew Weiner
Partner, Real Estate

Opening Remarks:
Mark Lessard
Partner & Leader of Global Finance