With the fallout in today's credit markets constricting financing options and depressing the recent, record-high valuations of real estate, it is essential to have legal counsel possessing the breadth of knowledge and experience to deal effectively with the possibility and reality of non-performing loans and financially-troubled real estate owners as well as the opportunities that may arise to acquire equity or debt positions.

At Cadwalader, finance, capital markets, real estate, bankruptcy, litigation and tax attorneys work collaboratively to provide clients with a thorough consideration of all options and strategies available in acquiring and/or managing troubled real property projects (held as portfolio loans or inside securitizations) and mortgage and mezzanine loans secured by those real property projects. They are well-situated to analyze the possible risks and rewards on behalf of both traditional and non-traditional lenders and borrowers before investments are made and then to offer total representation to financial institutions, hedge, opportunity and private equity and other investment funds, developers and government agencies alike in real estate workouts, foreclosures and bankruptcies on a national and international scale.

Mortgage Loans: Strategies to protect rights and maximize options and recoveries in connection with troubled mortgage loans must fit the special circumstances of each case, taking into account the number of lenders, the participation of real estate trusts and privately or publicly-traded real estate limited partnerships, intercreditor relationships, servicers or special servicers for constituents from whom they may or may not be required to take direction, and local law. Cadwalader has represented various parties in a variety of circumstances where a mortgage loan and its individualized attributes are at issue, negotiating the restructuring and advising on the foreclosure of both permanent loans and construction loans for underlying projects that have included office buildings, hotels, shopping centers, industrial facilities, golf courses, apartment buildings, and co-op and condominium complexes.

Mezzanine Loans: With the significant increase in mezzanine real estate loan financings (in many cases, funded simultaneously with mortgage loan financings), Cadwalader attorneys have represented investment funds and financial institutions in the their workout and enforcement. With extensive experience in the origination of mezzanine loans, in many cases with numerous levels of mezzanine debt and complicated intercreditor arrangements, Cadwalader is especially well-qualified to analyze and evaluate the rights, remedies, and related risks, facing lenders and borrowers.

Bankruptcies: Because bankruptcy is always a possibility with troubled loans, any workout or restructuring strategy has to take into account the implications of the bankruptcy option. Our approach to troubled real estate loans does not end when a bankruptcy is filed. We have extensive knowledge about single-asset special purpose vehicles that are commonly formed in CMBS mortgage and mezzanine financings, including issues related to potential bankruptcies of such vehicles. We also have broad capabilities in the litigation aspects of real estate workouts and bankruptcy, including the contested foreclosures of numerous multi-million dollar mortgages and mezzanine pledges. In representing secured lenders, we have foreclosed mortgages on virtually every type of property, including office buildings, shopping centers, raw land, hotels, resort communities, condominium projects and cooperatives.

Experience

• Represented JPMorgan Chase in connection with its secured debt in the Stations Casino bankruptcy.
• Advised a syndicate of lenders in the restructuring of $1 billion of debt of Harrah’s Casino.
• Advised a syndicate of lenders in the restructuring of $22 billion of debt used in connection with the acquisition of Hilton Hotels Corp., which involved a lending syndicate of 26 banks and institutional investors.
• Advised Brookfield Financial, an investor in the Las Vegas Hard Rock Hotel & Casino, in amending the terms, and extending the maturity date of, loans secured by the hotel and casino, including amendments to the mortgage and mezzanine loans secured under a CMBS facility.
• Represented JPMorgan Chase, 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.
• Represented a Japanese bank in the workout and foreclosure of $250 million of letter-of-credit backed notes secured by the Chrysler Building and related properties.
• JPMorgan Chase in a $2 billion financing post-bankruptcy of the Extended Stay Hotel chain.
• Bank of America as a special servicer in the multi-billion dollar restructuring of a Blackstone portfolio.
• JPMorgan in a $160 million bridge loan to an institutional investor of a portfolio of FDIC distressed assets to be refinanced through a CMBS non-performing securitization or through the workout and/or foreclosure of the individual loans.
• Bank of America in the restructuring of approximately $2.6 billion mortgage and mezzanine financing on the LaQuinta Hotel chain owned by affiliates of Blackstone.

We believe that our continued strength lies in ensuring that we attract, retain, and nurture the very best talent from all backgrounds, and we expect the future complexion of Cadwalader, Wickersham & Taft LLP will, with each passing year, more closely reflect the global community that we serve. 

Cadwalader has worked diligently to promote an inclusive work environment and, over the years, has developed many initiatives to fit our unique goals and challenges on issues of diversity and inclusion.  With the creation of the Cadwalader Center for Diversity & Inclusion (CCDI), a central resource for the firm’s diversity programs, initiatives and policies, we aim to improve upon our successes and follow through on our promise to weave diversity and inclusion principles into the fabric of our culture. 

The mission of the CCDI is to enhance gender, racial/ethnic, and LGBT diversity and inclusion within the firm to create an unrivalled environment that attracts, retains and promotes the best and brightest talent available to serve our clients. Governed by the Global Diversity Committee, chaired by Patrick T. Quinn, Managing Partner, the CCDI is a vehicle to support the work we currently perform, to reinforce our dedication to that work, to recognize outstanding effort and to communicate - to each other and to the clients we serve - our longstanding commitment to diversity and inclusion.

Recent Programs & Events

The Cadwalader Center for Diversity and Inclusion hosts programs and events throughout the year that are designed to increase cultural competence, celebrate history and heritage and educate attorneys on how to work effectively on diverse teams.

From Megan’s Law to Bernie Madoff: A Conversation with Judge Chin

- July 23, 2015

The Cadwalader Asian Pacific American Attorney Resource Group hosted a conversation with the Honorable Denny Chin, United States Circuit Judge for the Second Circuit.  During the interactive conversation, Judge Chin discussed his experiences as a federal judge and his path to the bench. Attendees had the opportunity to network and speak with Judge Chin during the cocktail reception that followed.

The Fight for Marriage Equality in the Supreme Court

- June 9, 2015

The Cadwalader LGBT Network and the Gay & Lesbian Advocates & Defenders (GLAD) hosted a Pride Month event, The Fight for Marriage Equality in the Supreme Court, featuring Mary Bonauto, GLAD’s Civil Rights Project Director and Janson Wu, GLAD’s Executive Director. During the presentation Mary discussed her experience arguing before the U.S. Supreme Court for marriage equality and Janson discussed the future of the LGBT rights movement.

Justice Denied: Wards Cove Packing Co. v. Atonio

- May 12, 2015

Members of the Asian American Bar Association of New York, including Cadwalader attorneys and the Honorable Denny Chin of the U.S. Court of Appeals for the Second Circuit presented a case reenactment of Wards Cove Packing Co. v. Atonio, a landmark employment discrimination case. The presentation told the story of the Wards Cove workers through narration, reenactment of court proceedings, and historic photographs. To view the performance, click here.

The Partner Track

- May 5, 2015

The Cadwalader Asian Pacific American Attorney Resource Group and the Women’s Leadership Initiative co-hosted a panel discussion with Cadwalader Partners, Ingrid Bagby, Kathy Chin and Athena Eastwood, focusing on their career experiences and paths to partnership. The panel was moderated by Helen Wan, author of The Partner Track, a fictional story about a young Asian-American corporate associate up for partner at her New York law firm.

“From Selma to Ferguson to Today: Why Civil Rights Matter,” featuring Professor Charles Ogletree, Harvard Law School

- April 29, 2015

The Cadwalader Black and Latino Association hosted a conversation with Charles Ogletree, Harvard Law School Jesse Climenko Professor of Law, and Founding and Executive Director of the Charles Hamilton Houston Institute for Race and Justice.  The conversation was followed by a cocktail reception where attorneys had the opportunity to network  and speak with Professor Ogletree.

The Art of Building Business Relationships and Executive Presence

- March 25, 2015

The Women’s Leadership Initiative and Diane Darling, Founder of the Darling Institute, hosted a workshop on building business relationships and executive presence.  This interactive presentation explored how professionals at all stages of their career can integrate networking and relationship-building into their everyday lives. 

WLI London Client Event: “Walking the Nile” by Levison Wood

– March 12, 2015

The Women’s Leadership Initiative hosted a special evening at our London office with Levison Wood, explorer, writer, and photographer. Formerly an officer in the British Parachute Regiment, Wood has led pioneering journeys into undiscovered regions, travelling to more than 80 countries. His nine-month walk along the length of the Nile, from source to sea, is chronicled in a recent Channel 4 documentary. During the presentation Wood described the amazing people, breathtaking places and shocking sights he encountered on his ground-breaking expedition.